M&M AGM Notice

Notice
MAHINDRA & MAHINDRA LIMITED
SPECIAL BUSINESS
THE SIXTY-EIGHTH ANNUAL GENERAL MEETING OF MAHINDRA

& MAHINDRA LIMITED will be held at Birla Matushri Sabhagar,
19, Sir Vithaldas Thackersey Marg (New Marine Lines),
Mumbai - 400 020 on Friday, the 8th day of August, 2014 at
3.30 p.m. to transact the following businesses:
6.
To consider and, if thought fit, to pass, with or without
modification(s), the following as an Ordinary Resolution:

RESOLVED that pursuant to the provisions of sections
149, 152 read with Schedule IV and all other applicable
provisions of the Companies Act, 2013 and the Rules
framed thereunder (including any statutory modification(s)
or re-enactment thereof for the time being in force),
Mr.M.M. Murugappan (DIN:00170478), Director of the
Company, who has submitted a declaration that he meets
the criteria for independence as provided in section149(6)
of the Companies Act, 2013 and whose period of office was
liable to determination by retirement of Directors by rotation
under the provisions of the Companies Act, 1956 and whose
term expires at this Annual General Meeting and in respect
of whom the Company has received a Notice in writing from
a Member alongwith the deposit of the requisite amount
under section160 of the Companies Act, 2013 proposing
his candidature for the office of Director, being so eligible,
be appointed as an Independent Director of the Company
to hold office for a term of 4(four) consecutive years
commencing from 8thAugust, 2014.
ORDINARY BUSINESS
1.
To receive, consider and adopt the Audited Financial
Statements of the Company for the Financial Year ended
31stMarch, 2014 including the Audited Balance Sheet as at
31stMarch, 2014 and the Statement of Profit and Loss for
the year ended on that date and the Reports of the Board
of Directors and Auditors thereon.
2.
To declare a dividend on Ordinary (Equity) Shares.
3. To consider and, if thought fit, to pass, with or without


RESOLVED that Mr.Narayanan Vaghul (DIN: 00002014),
who was appointed as a Director of the Company liable to
retire by rotation, and who does not seek re-appointment
upon expiry of his term at this Annual General Meeting, be
not re-appointed a Director of the Company.
7.

FURTHER RESOLVED that the vacancy, so created on the
Board of Directors of the Company, be not filled.

Mr.Deepak S. Parekh (DIN:00009078), Director of the
Company, who has submitted a declaration that he meets the
criteria for independence as provided in section 149(6) of the
Companies Act, 2013 and whose period of office was liable to
determination by retirement of Directors by rotation under
the provisions of the Companies Act, 1956 and in respect of
whom the Company has received a Notice in writing from
under section 160 of the Companies Act, 2013 proposing his
candidature for the office of Independent Director, being
so eligible, be appointed as an Independent Director of the
Company to hold office for a term of 3(three) consecutive
years commencing from 8thAugust, 2014.


RESOLVED that Mr.A.K. Nanda (DIN: 00010029), who
was appointed as a Director of the Company liable to retire
by rotation, and who does not seek re-appointment upon
expiry of his term at this Annual General Meeting, be not
re-appointed a Director of the Company.

FURTHER RESOLVED that the vacancy, so created on the
Board of Directors of the Company, be not filled.
5.
RESOLVED that pursuant to section139 and other applicable
provisions, if any, of the Companies Act, 2013 and the Rules
framed thereunder and pursuant to the recommendation
of the Audit Committee, Messrs Deloitte Haskins & Sells,
Chartered Accountants (ICAI Firm Registration Number
117364W), the retiring Auditors of the Company, be reappointed as Auditors of the Company to hold office from
the conclusion of this Annual General Meeting (AGM),
until the conclusion of the third consecutive AGM of the
Company to be held in the year 2017 (subject to ratification
of the appointment by the Members at every AGM held after
this AGM), at a remuneration to be determined by the Board
of Directors of the Company in addition to out of pocket
expenses as may be incurred by them during the course of
the Audit.
8.

provisions of the Companies Act, 2013 and the Rules framed
thereunder (including any statutory modification(s) or reenactment thereof for the time being in force), Mr.Nadir
B. Godrej (DIN:00066195), Director of the Company, who
has submitted a declaration that he meets the criteria
for independence as provided in section149(6) of the
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Dr.Vishakha N. Desai (DIN:05292671), Director of the

Company, who has submitted a declaration that she meets
the criteria for independence as provided in section149(6)
of the Companies Act, 2013 and whose period of office
was liable to determination by retirement of Directors
by rotation under the provisions of the Companies Act,
1956 and in respect of whom the Company has received a
Notice in writing from a Member alongwith the deposit of
the requisite amount under section 160 of the Companies
Act, 2013 proposing her candidature for the office of
Independent Director, being so eligible, be appointed as
an Independent Director of the Company to hold office
for a term of 5(five) consecutive years commencing from
8thAugust, 2014.

under section160 of the Companies Act, 2013 proposing his
Company to hold office for a term of 4(four) consecutive
9.

Mr.R. K. Kulkarni (DIN:00059367), Director of the Company,
who has submitted a declaration that he meets the criteria
Company to hold office for a term of 5(five) consecutive
12.

provisions of the Companies Act, 2013 and the Rules framed
thereunder (including any statutory modification(s) or reenactment thereof for the time being in force), Mr.Vikram
Singh Mehta (DIN:00041197), Director of the Company,
for independence as provided in section 149(6) of the
10.

Mr.Anupam Puri (DIN:00209113), Director of the Company,
13.
RESOLVED that pursuant to the provisions of section152
and all other applicable provisions of the Companies Act,
2013 and the Rules framed thereunder (including any
statutory modification(s) or re-enactment thereof for the
time being in force), Mr.Bharat Doshi (DIN:00012541), who
was appointed by the Board of Directors as an Additional
Director of the Company with effect from 14thNovember,
2013 and who holds office upto the date of this Annual
General Meeting of the Company in terms of section161 of
the Companies Act, 2013 and in respect of whom the Company
has received a Notice in writing from a Member alongwith
the deposit of the requisite amount under section160 of the
Companies Act, 2013 proposing his candidature for the office
of Director of the Company, be appointed as a Director of
the Company, liable to retire by rotation.
11.
RESOLVED that pursuant to the provisions of sections149,
152 read with Schedule IV and all other applicable
14.
RESOLVED that pursuant to the provisions of section 152
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time being in force), Mr.S.B. Mainak (DIN:02531129), who
was appointed by the Board of Directors as an Additional
Director of the Company with effect from 13thNovember,
2013 and who holds office upto the date of this Annual
General Meeting of the Company in terms of section161
of the Companies Act, 2013 and in respect of whom the
Company has received a Notice in writing from a Member
alongwith the deposit of the requisite amount under
section 160 of the Companies Act, 2013 proposing his
candidature for the office of Director of the Company, be
appointed as a Director of the Company, liable to retire
by rotation.
deemed to include any duly authorised Committee thereof,

for the time being exercising the powers conferred
on the Board by this Resolution) to revise the basic salary
payable to Dr.Pawan Goenka, Executive Director (hereinafter
referred to as the appointee) within the above mentioned
scale of salary.

FURTHER RESOLVED that the perquisites (including
allowances) payable or allowable and commission to the
appointee be as follows:

Perquisites:
1.
In addition to the salary, the appointee shall also
be entitled to perquisites which would include
accommodation (furnished or otherwise) or house
rent allowance in lieu thereof, gas, electricity, water,
furnishings, medical reimbursement and leave travel
concession for self and family, club fees, use of Company
cars, medical and personal accident insurance and other
benefits, amenities and facilities including those under
the Companys Special Post Retirement Benefits Scheme
in accordance with the Rules of the Company.
15.
RESOLVED that pursuant to the provisions of section 152
time being in force), Dr.Pawan Goenka (DIN:00254502),
who was appointed by the Board of Directors as an
Additional Director of the Company with effect from
23rdSeptember, 2013 and who holds office upto the date
of this Annual General Meeting of the Company in terms
of section161 of the Companies Act, 2013 and in respect of
candidature for the office of Director of the Company, be
appointed as a Director of the Company, liable to retire by
rotation.
The value of the perquisites would be evaluated as per

Income-tax Rules, 1962 wherever applicable and at cost
in the absence of any such Rule.
16.
modification(s), the following as a Special Resolution:
RESOLVED that pursuant to the provisions of sections196 and
197 read with ScheduleV and all other applicable provisions
of the Companies Act, 2013 (the Act), the Companies
(Appointment and Remuneration of Managerial Personnel)
Rules, 2014 (including any statutory modification(s) or reenactment thereof for the time being in force) and subject
to the approval of Central Government, if necessary, and
such other approvals, permissions and sanctions, as may be
required and subject to such conditions and modifications,
as may be prescribed or imposed by any of the authorities
while granting such approvals, permissions and sanctions,
approval of the Company be accorded to the appointment
of Dr.Pawan Goenka (DIN:00254502) as a Whole time
Director of the Company designated as Executive Director
and President Automotive and Farm Equipment Sectors for
a period of 5(five) years with effect from 23rdSeptember,
2013 to 22ndSeptember, 2018 on a salary of Rs.10,32,300
per month in the scale of Rs.7,00,000 to Rs.15,00,000
per month.
2. Contribution to Provident Fund, Superannuation Fund,

Annuity Fund and Gratuity would not be included in the
computation of ceiling on remuneration to the extent
these either singly or put together are not taxable
under the Income-tax Act, 1961.
3. Encashment of earned leave at the end of the tenure as

per Rules of the Company shall not be included in the
computation of ceiling on remuneration.
4.
Provision of car for use on Companys business,
telephone and other communication facilities at
residence would not be considered as perquisites.
Commission:
In addition to the salary and perquisites, the appointee would
be entitled to such commission based on the net profits of
the Company in any financial year not exceeding 1% (one
per cent) of such profits as the Governance, Nomination and
Remuneration Committee shall decide, having regard to the
performance of the Company.
Provided that the remuneration payable to the appointee
(including the salary, commission, perquisites, benefits and
amenities) does not exceed the limits laid down in section197
of the Act including any statutory modification(s) or reenactment thereof.
FURTHER RESOLVED that where in any financial year during
the currency of the tenure of the appointee, the Company
has no profits or its profits are inadequate, the Company
may pay to the appointee, the above remuneration as
the minimum remuneration for a period not exceeding
3(three) years from the date of appointment by way of
salary, perquisites and other allowances and benefits as
specified above subject to receipt of the requisite approvals,
if any.

FURTHER RESOLVED that the approval of the Company
be accorded to the Board of Directors of the Company
(hereinafter referred to as Board which term shall be
3
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of the Company at the 64thAnnual General Meeting of the

Company held on 28thJuly, 2010 to the Mahindra & Mahindra
Employees Stock Option Trust (the Trust) constituted by
the Company in pursuance of the Mahindra & Mahindra
Limited Employees Stock Option Scheme 2010 (the 2010
Scheme).
FURTHER RESOLVED that for the purpose of giving effect

to this Resolution, the Board be authorised to do all such
acts, deeds, matters and things as it may, in its absolute
discretion, deem necessary, proper or desirable and to settle
any questions, difficulties or doubts that may arise in this
regard and further to execute all necessary documents,
applications, returns and writings as may be necessary,
proper, desirable or expedient.
FURTHER RESOLVED that the total number of Options to be

granted pursuant to the 2010 Scheme shall stand augmented
to the extent of 52,00,000 Ordinary (Equity) Shares to be
allotted to the Trust pursuant to this Resolution.
17. T
o consider and, if thought fit, to pass, with or without
FURTHER RESOLVED that the new Ordinary (Equity) Shares

to be issued and allotted in the manner aforesaid shall rank
pari passu in all respects with the then existing Ordinary
(Equity) Shares of the Company.
RESOLVED that pursuant to the provisions of section 148 of

the Companies Act, 2013 (the Act), the Companies (Audit
and Auditors) Rules, 2014 and all other applicable provisions
of the Act and the Rules framed thereunder (including any
statutory modification or re-enactment thereof for the time
being in force), Messrs N. I. Mehta & Co., Cost Accountants,
appointed by the Board of Directors of the Company as
Cost Auditors for conducting the audit of the Cost Records
of the Company, if required, for the Financial Year ending
31st March, 2015, be paid the remuneration as set out in the
Statement annexed to the Notice convening this Meeting.

FURTHER RESOLVED that for the purpose of creating,
offering, issuing, allotting and listing of the Equity Shares,
the Board be authorised on behalf of the Company to
make any modifications, changes, variations, alterations
or revisions in the 2010 Scheme from time to time or to
suspend, withdraw or revive the 2010 Scheme from time
to time and do all such acts, deeds, matters and things as
it may, in its absolute discretion, deem necessary for such
purpose and with power on behalf of the Company to settle
any questions, difficulties or doubts that may arise in this
regard without requiring the Board to secure any further
consent or approval of the Members of the Company.

FURTHER RESOLVED that the Board of Directors of the
Company be authorised to do all acts and take all such steps
as may be necessary, proper or expedient to give effect to
this Resolution.

RESOLVED that in furtherance of and pursuant to the Special

Resolutions in respect of Item Nos.10 and 11 passed by the
Members at the 64thAnnual General Meeting of the Company
held on 28thJuly, 2010 and in accordance with the provisions
of the Articles of Association of the Company, sections42, 62
and all other applicable provisions, if any, of the Companies
Act, 2013 (the Act) and the Rules framed thereunder
including any statutory modification(s) or re-enactment
thereof for the time being in force and the provisions of
the Securities and Exchange Board of India (Employee Stock
Option Scheme and Employee Stock Purchase Scheme)
Guidelines, 1999 including any modifications thereof or
supplements thereto (the Guidelines) and subject to such
approvals, consents, permissions and sanctions as may be
necessary and subject to such conditions and modifications as
may be prescribed or imposed while granting such approvals,
consents, permissions and sanctions which may be agreed
to by the Board of Directors of the Company (hereinafter
referred to as the Board which term shall be deemed to
include any Committee thereof), consent of the Members of
the Company be accorded to the Board to create, offer, issue
and allot 52,00,000 Ordinary (Equity) Shares of Rs. 5 each i.e.
not exceeding 0.84% of the post issued Equity Share Capital
of the Company (or such other adjusted figure for any
bonus, stock splits or consolidations or other re-organisation
of the capital structure of the Company as may be applicable
from time to time), in one or more tranches at such price and
on such terms and conditions as approved by the Members
RESOLVED that pursuant to the provisions of sections 73, 76

and all other applicable provisions, if any, of the Companies
Act, 2013 (the Act) and the Companies (Acceptance of
Deposits) Rules, 2014 (the Rules) (including any statutory
modification(s) or re-enactment thereof for the time being
in force), consent of the Members of the Company be
accorded to the Company to invite/accept/renew from time
to time unsecured/secured Deposits from the public and/
or Members of the Company upto the permissible limits as
prescribed under the Rules.
to this Resolution, the Board of Directors of the Company
(hereinafter referred to as the Board which term shall be
deemed to include any Committee thereof) be authorised
to do all such acts, deeds, matters and things as it may, in
its absolute discretion, deem necessary, proper or desirable
for such invitation/acceptance/renewal of Deposits by the
Company and to settle any questions, difficulties or doubts
that may arise in this regard and further to execute all
necessary documents, applications, returns and writings as
may be necessary, proper, desirable or expedient.
RESOLVED that pursuant to the provisions of sections42,
71 of the Companies Act, 2013 (the Act) read with the
Companies (Prospectus and Allotment of Securities) Rules,
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(India) Private Limited having their Registered Office at

13AB, Samhita Warehousing Complex, 2nd Floor, Sakinaka
Telephone Exchange Lane, Off Andheri Kurla Road, Sakinaka,
Andheri (East), Mumbai-400 072.
2014 and all other applicable provisions of the Act and the
Rules framed thereunder, as may be applicable, and other
applicable Guidelines and Regulations issued by the Securities
and Exchange Board of India (SEBI) or any other law for the
time being in force (including any statutory modification(s)
or amendment thereto or re-enactment thereof for the time
being in force) and in terms of the Articles of Association of
the Company, approval of the Members of the Company be
accorded to authorise the Board of Directors of the Company
(hereinafter referred to as the Board which term shall
be deemed to include any Committee thereof) to borrow
from time to time, by way of securities including but not
limited to secured/unsecured redeemable Non-Convertible
Debentures (NCDs) and/or Commercial Paper (CP) to
be issued under Private Placement basis, in one or more
series/tranches aggregating upto an amount not exceeding
Rs.2,500 crores (Rupees Two Thousand Five Hundred Crores
only), issuable/redeemable at discount/par/premium, under
one or more shelf disclosure documents, during a period of
1 (one) year from the date of this Annual General Meeting,
on such terms and conditions as the Board of the Company
may, from time to time, determine and consider proper and
most beneficial to the Company including as to when the
said NCDs and/or CP be issued, the consideration for
the issue, utilisation of the issue proceeds and all matters
connected with or incidental thereto and that the said
borrowing shall be within the overall borrowing limits of the
Company.
F. The Register of Members and Transfer Books of the Company

will be closed from 19thJuly, 2014 to 8thAugust, 2014 (both
days inclusive).
G. The dividend, if declared at the Annual General Meeting,
would be paid/despatched on or after 9 thAugust, 2014 to
those persons or their mandates:

(a)
whose names appear as Beneficial Owners as at the
end of the business hours on 18thJuly, 2014 in the
list of Beneficial Owners to be furnished by National
Securities Depository Limited and Central Depository
Services (India) Limited in respect of the shares held in
electronic mode; and
(b)
whose names appear as Members in the Register
of Members of the Company after giving effect to
valid share transfers in physical form lodged with the
Company/its Registrar and Transfer Agents on or before
18thJuly, 2014.
H.
Under the Companies Act, 1956 dividends that are
unclaimed/unpaid for a period of seven years are required
to be transferred to the Investor Education and Protection
Fund (IEPF) administered by the Central Government. An
amount of Rs.78,47,160 being unclaimed/unpaid dividend of
the Company for the financial year ended 31stMarch, 2006
was transferred in September, 2013 to IEPF and Rs.58,53,173
being unclaimed/unpaid interim dividend of the Company
for the financial year ended 31stMarch, 2007 was transferred
in April, 2014 to IEPF. No claim lies against the Company in
respect thereof.

to this Resolution, the Board be authorised to do all such
acts, deeds, matters and things and execute all such deeds,
documents, instruments and writings as it may in its sole and
absolute discretion deem necessary in relation thereto.
Notes:
A. The Explanatory Statement as required under section102 of
the Companies Act, 2013 is annexed hereto.
Due dates of transferring unclaimed and unpaid dividends

declared by the Company for the financial year 2006-07
(final dividend) and thereafter to IEPF:
B.
A MEMBER ENTITLED TO ATTEND AND VOTE AT THE
MEETING IS ENTITLED TO APPOINT A PROXY TO ATTEND
AND VOTE INSTEAD OF HIMSELF AND A PROXY NEED NOT
BE A MEMBER.
C. The instrument appointing a proxy must be deposited with
the Company at its Registered Office not less than 48 hours
before the time for holding the Meeting.
Financial Year
ended
Date of
declaration of
dividend
Last date for claiming

unpaid/unclaimed
dividend
31st March, 2007
30 th July, 2007
30 th August, 2014
31 March, 2008
30 July, 2008
28 th August, 2015
31 March, 2009
30 July, 2009
30 th August, 2016
31st March, 2010
28 th July, 2010
26th August, 2017
31 March, 2011
8 August, 2011
6th September, 2018
31 March, 2012
8 August, 2012
6th September, 2019
31 March, 2013
13 August, 2013
11th September, 2020
st
st
D.
A person can act as a proxy on behalf of Members not
exceeding fifty and holding in the aggregate not more than
ten percent of the total share capital of the Company carrying
voting rights. A Member holding more than ten percent of
the total share capital of the Company carrying voting rights
may appoint a single person as proxy and such person shall
not act as a proxy for any other person or Shareholder.
Proxies submitted on behalf of limited companies, societies,
etc., must be supported by an appropriate resolution/
authority as applicable.
st
st
st
th
th
th
th
th

Members who have not encashed the dividend warrants
so far in respect of the aforesaid periods, are requested to
make their claim to Sharepro Services (India) Private Limited
well in advance of the above due dates. It may be noted
that once the amounts in the unpaid dividend accounts are
transferred to IEPF, no claim shall lie against the IEPF or the
Company in respect thereof and the Members would lose
their right to claim such dividend.
E. The Companys Registrar and Transfer Agents for its Share

Registry Work (Physical and Electronic) are Sharepro Services
5
7/3/2014 3:40:07 PM
changes, if any, in their registered addresses at an early

date, in case of Shares held in physical form;
I. Members can avail of the facility of nomination in respect

of shares held by them in physical form pursuant to the
provisions of section72 of the Companies Act, 2013. Members
desiring to avail of this facility may send their nomination
in the prescribed Form No. SH-13 duly filled in to Sharepro
Services (India) Private Limited at the above mentioned
address. Members holding shares in electronic mode may
contact their respective Depository Participants for availing
this facility.
J.
The Securities and Exchange Board of India has made it
mandatory for all companies to use the bank account details
furnished by the Depositories and the bank account details
maintained by the Registrar and Transfer Agents for payment
of dividend through Electronic Clearing Service (ECS) to
investors wherever ECS and bank details are available. In the
absence of ECS facilities, the Company will print the bank
account details, if available, on the payment instrument for
distribution of dividend. The Company will not entertain any
direct request from Members holding shares in electronic
mode for deletion of/change in such bank details. Further,
instructions if any, already given by them in respect of shares
held in physical form will not be automatically applicable to
shares held in the electronic mode. Members who wish to
change such bank account details are therefore requested to
advise their Depository Participants about such change, with
complete details of bank account.
(b)
intimate to the respective Depository Participant,
changes, if any, in their registered addresses at an early
date, in case of Shares held in dematerialised form;
(c)
quote their folio numbers/Client ID/DP ID in all
correspondence; and
(d) consolidate their holdings into one folio in case they

hold Shares under multiple folios in the identical order
of names.
N.
Appointment/Re-appointment
Shareholding in the Company:
Sr.
No.
Name of the Director
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Mr.M. M. Murugappan
Mr.Deepak S. Parekh
Mr.Nadir B. Godrej
Mr.R. K. Kulkarni
Mr.Anupam Puri
Dr.Vishakha N. Desai
Mr.Vikram Singh Mehta
Mr.Bharat Doshi
Mr.S. B. Mainak
Dr.Pawan Goenka
of
Directors
and
their
Ordinary (Equity)
Shares of Rs.5 each
held by the Director
1,00,000
1,12,180
3,83,086
83,088
5,95,508
1,50,768
None of the Directors of the Company is inter-se related to

each other.
K. The Company has extended the facility of electronic credit

of dividend directly to the respective bank accounts of the
Member(s) through the Electronic Clearing Service (ECS)/
National Electronic Clearing Service (NECS). Members
wishing to avail of this facility are requested to intimate
the Companys Registrar and Transfer Agents/ Depository
Participants in the prescribed form and with the prescribed
details. Members located in places where ECS/NECS facility is
not available may submit their bank details to the Registrar
and Transfer Agents. This will enable the Company to
incorporate this information on the dividend warrants and
thus prevent fraudulent encashment.
In respect of the information to be provided under Clause49

of the Listing Agreement pertaining to the Directors being
appointed, re-appointed, Members are requested to kindly
refer the Chapter on Corporate Governance in the Annual
Report.
O. Members are requested to bring their copy of the Annual
Report to the Annual General Meeting.
P. Members/Proxies/Representatives are requested to bring the
Attendance Slip enclosed in the Annual Report for attending
the Meeting.
Q. Voting through electronic means
L. Pursuant to sections 101 and 136 of the Companies Act, 2013

read with the Rules framed thereunder, the Notice calling
the Annual General Meeting along with the Annual Report
2013-14 would be sent by electronic mode to those Members
whose e-mail addresses are registered with the Depository
or the Companys Registrar and Transfer Agents, unless the
Members have requested for a physical copy of the same. For
Members who have not registered their e-mail addresses,
physical copies would be sent by the permitted mode.

Members are requested to support this Green Initiative
by registering/updating their e-mail addresses with
the Depository Participant (in case of Shares held in
dematerialised form) or with Sharepro Services (India)
Private Limited (in case of Shares held in physical form).
M. Members are requested to:

(a)
intimate to the Companys Registrar and Transfer
Agents, Sharepro Services (India) Private Limited,
I.
In compliance with the provisions of section 108
of the Companies Act, 2013 read with Rule 20 of
the Companies (Management and Administration)
Rules, 2014 and the revised Clause35B of the Listing
Agreement, the Company is pleased to offer e-voting
facility to its Members in respect of the businesses
to be transacted at the 68thAnnual General Meeting
(AGM). The Company has engaged the services of
National Securities Depository Limited (NSDL) as the
Authorised Agency to provide e-voting facilities.
II. Members are requested to note that the business may

be transacted through electronic voting system and the
Company is providing facility for voting by electronic
means. It is hereby clarified that it is not mandatory for
a Member to vote using the e-voting facility. A Member
may avail of the facility at his/her/its discretion, as per
the instructions provided herein:
7/3/2014 3:40:07 PM
Instructions:

(i)
Open
email
and
open
PDF
file
M&M e-Voting.pdf with your Client ID or
Folio No. as password. The said PDF file
contains your user ID and password/PIN for
e-voting. Please note that the password is an
initial password.

III. In case of any queries, you may refer to the Frequently
Asked Questions (FAQs) for Shareholders and
e-voting user manual for Shareholder available at the
Downloads section of http://www.evoting.nsdl.com
IV. If you are already registered with NSDL for e-voting
then you can use your existing user ID and password/
PIN for casting your vote.
V. The e-voting period commences on Saturday, 2ndAugust,

2014 (09:00 am IST) and ends on Monday, 4thAugust,
2014 (05:00 pm IST). During this period, Members of
the Company, holding shares either in physical form
or in dematerialised form, as on the cut-off date i.e.
27thJune, 2014, may cast their vote electronically. The
e-voting module shall be disabled by NSDL for voting
thereafter. Once the vote on a resolution is cast by the
Member, the Member shall not be allowed to change it
subsequently.
VI. The voting rights of Members shall be in proportion to

their share in the paid-up equity share capital of the
Company as on the cut-off date i.e. 27thJune, 2014.
VII.
Mr. Sachin Bhagwat, Practicing Company Secretary
(Membership No.ACS10189) has been appointed as the
Scrutinizer to scrutinize the e-voting process in a fair
and transparent manner.
VIII. The Scrutinizer shall, within a period not exceeding3

(three) working days from the conclusion of the e-voting
period, unblock the votes in the presence of at least 2
(two)witnesses not in the employment of the Company
and make a Scrutinizers Report of the votes cast in
favour or against, if any, forthwith to the Chairman of
the Company.
IX. The Results shall be declared on or after the AGM of

the Company. The Results declared alongwith the
Scrutinizers Report shall be placed on the Companys
website www.mahindra.com and on the website of
NSDL www.evoting.nsdl.com within 2 (two) days of
passing of the resolutions at the AGM of the Company
and communicated to the BSE Limited and National
Stock Exchange of India Limited, where the shares of
the Company are listed.
(ii)
Launch internet browser by typing the
following URL: https://www.evoting.nsdl.com/
(iii) Click on Shareholder Login
(iv) Put user ID and password noted in step (i)

above as initial password/PIN. Click Login.
(v) Password change menu appears. Change the

password/PIN with new password of your
choice with minimum 8 digits/characters
or combination thereof. Note the new
password. It is strongly recommended not to
share your password with any other person
and take utmost care to keep your password
confidential.
(vi)
Home page of e-voting opens. Click on
e-Voting: Active Voting Cycles.
(vii)
Select EVEN (E-voting Event Number) of
Mahindra & Mahindra Limited.
(viii) Now you are ready for e-voting as Cast Vote

page opens.
(ix) Cast your vote by selecting appropriate option

and click on Submit and also Confirm
when prompted.
(x) Upon confirmation, the message Vote cast

successfully will be displayed.
(xi) Once you have voted on the resolution, you

will not be allowed to modify your vote.
(xii)
Institutional shareholders (i.e. other than
individuals, HUF, NRI, etc.) are required to
send scanned copy (PDF/JPG Format) of
the relevant Board Resolution/Authority
letter, etc. together with attested specimen
signature of the duly authorised signatory(ies)
who are authorised to vote, to the Scrutinizer
through e-mail to sbhagwatcs@yahoo.co.in
with a copy marked to evoting@nsdl.co.in
A. In case a Member receives an email from NSDL [for

Members whose email IDs are registered with the
Company/Depository Participant(s)]:
By Order of the Board

NARAYAN SHANKAR
Company Secretary
B.
In case a Member receives physical copy of the
Notice of AGM [for members whose email IDs
are not registered with the Company/Depository
Participant(s)]:
(i)
User ID, initial password and EVEN will be
provided at the bottom of the Attendance
Slip for the AGM.
(ii)
Please follow all steps from Sl. No. (ii) to
Sl. No. (xii) above to cast vote.
Registered Office:
Gateway Building, Apollo Bunder,
Mumbai - 400 001.
CIN
: L65990MH1945PLC004558
e-mail : investors@mahindra.com
Website : www.mahindra.com
Tel.
: +91 22 22021031
Fax
: +91 22 22875485
30 th May, 2014
7/3/2014 3:40:07 PM
Explanatory Statement in respect of the Special Business pursuant to section 102 of the Companies
Act, 2013
ITEM Nos. 6 to 12
Keeping in view the vast experience and knowledge which these

Directors possess, the Board considers that their continued association
would be of immense benefit to the Company and it is desirable to
continue to avail their services as Independent Directors.
As per section 149 of the Companies Act, 2013 (the Act), the
Company should have at least one third of the total number of
Directors as Independent Directors on the Board of the Company.
An Independent Director shall hold office for a term of up to five
consecutive years on the Board of a Company and no Independent
Director shall hold office for more than two consecutive terms. The
provisions relating to retirement by rotation shall not be applicable
to the Independent Directors.
This Statement may also be regarded as a disclosure under Clause 49

of the Listing Agreement with the Stock Exchanges.
The above Independent Directors are interested in the Resolutions
as set out at Item Nos.6 to 12 of the Notice to the extent of their
respective appointments and shareholding interest, if any, in the
Company.
As per Clause 49(I)(A) of the Listing Agreement, in case the Chairman

is an executive director or a Promoter, at least one-half of the Board
of the Company shall consist of Independent Directors.
The relatives of the above mentioned Independent Directors viz.

Mr.M. M. Murugappan, Mr.Deepak S. Parekh, Mr.Nadir B. Godrej,
Mr.R. K. Kulkarni, Mr.Anupam Puri, Dr.Vishakha N. Desai and
Mr.Vikram Singh Mehta may be deemed to be interested in the
Resolutions set out at Item Nos.6 to 12 of the Notice, to the extent
of their shareholding interest, if any, in the Company.

Mr.R. K. Kulkarni and Mr.Anupam Puri are Independent Directors
of the Company in terms of Clause 49 of the Listing Agreement and
have held the positions as such for more than 10 (ten) years. Similarly,
Dr.Vishakha N. Desai and Mr.Vikram Singh Mehta are Independent
Directors of the Company in terms of Clause 49 of the Listing
Agreement who were inducted on the Board on 30 thMay, 2012.
Save and except the above, none of the other Directors, Key
Managerial Personnel of the Company and their relatives are, in
any way, concerned or interested, financially or otherwise, in these
Resolutions except to the extent of their shareholding interest, if any,
in the Company.
Pursuant to the recommendation of the Governance, Nomination

and Remuneration Committee, the Board of Directors at its
Meeting held on 30 thMay, 2014 has proposed the appointment of
Mr.R. K. Kulkarni, Mr.Anupam Puri, Dr.Vishakha N. Desai and
Mr.Vikram Singh Mehta as Independent Directors, who shall hold
office on the Board of the Company for a period as stated in the
respective Resolutions.
The Board recommends the Ordinary Resolutions set out at Item

Nos.6 to 12 of the Notice for the approval by the Members.
ITEM No. 13
Pursuant to the recommendation of the Governance, Nomination and
Remuneration Committee, the Board of Directors at its Meeting held
on 13thNovember, 2013 appointed Mr.Bharat Doshi as an Additional
Director of the Company with effect from 14thNovember, 2013. He
holds office upto the date of the ensuing Annual General Meeting
pursuant to section161 of the Companies Act, 2013 and Article 120 of
the Articles of Association of the Company. The Company has received
a Notice in writing from a Member alongwith the deposit of the
requisite amount under section160 of the Companies Act, 2013
proposing his candidature for the office of Director of the Company.
The Company has received Notices in writing from a Member

alongwith the deposit of the requisite amount under section 160
of the Act proposing the candidatures of Mr.M. M. Murugappan,
Mr.Deepak S. Parekh, Mr.NadirB. Godrej, Mr.R.K. Kulkarni,
Mr.Anupam Puri, Dr.Vishakha N. Desai and Mr.Vikram Singh Mehta
for the office of Independent Directors of the Company.
The Company has received declarations from each of the Independent
Directors mentioned above that they meet with the criteria of
independence as prescribed both under sub-section (6) of section 149
of the Act and under Clause 49 of the Listing Agreement.
Mr.Bharat Doshi, a Director holds a Masters Degree in Law from

the University of Bombay and is Fellow Member of The Institute
of Chartered Accountants of India and The Institute of Company
Secretaries of India. He has also participated in the Program for
Management Development at Harvard Business School. He has served
the Mahindra Group since 1973 and held several important positions
within the Group spanning 40 years including Group Chief Financial
Officer from 2007 to 2013.
Further, the above Independent Directors are not disqualified from

being appointed as Directors in terms of section164 of the Act and
have given their consent in writing to act as Directors of the Company.
All the above mentioned Directors are persons of integrity and
possess appropriate skills, experience, knowledge and qualifications
in their respective fields which are beneficial to the interests of
the Company.
He was inducted to the Board of the Company as an Executive

Director in August, 1992 and was in charge of Finance & Accounts,
Corporate Affairs and Information Technology. He stepped down
from his executive position with effect from close of working hours
on 13thNovember, 2013.
In the opinion of the Board, the above mentioned Independent

Directors fulfill the conditions for appointment as Independent
Directors as specified in the Act and the Rules framed thereunder.
These Directors are independent of the management.
Mr.Doshi is the Chairman of Mahindra & Mahindra Financial Services

Limited and Mahindra Intertrade Limited and a Director in several
companies and is also a Member of various Committees of the Board,
details whereof are given in the Chapter on Corporate Governance in
the Annual Report.
A brief resume of the above mentioned Directors, nature of their

expertise in specific functional areas and names of the companies
in which they hold directorships and memberships/chairmanships of
Board Committees, shareholding and relationships between directors
inter-se as stipulated under Clause49 of the Listing Agreement with
the Stock Exchanges, are provided in the Corporate Governance
Report forming part of the Annual Report.
Mr.Doshi holds 5,95,508 Ordinary (Equity) Shares of Rs.5 each in the

Company.
7/3/2014 3:40:07 PM
The Board is of the view that Mr.Doshis knowledge and experience

will be of immense benefit and value to the Company and, therefore,
recommends his appointment to the Members.
Member alongwith the deposit of the requisite amount under

section160 of the Act proposing his candidature for the office of
Director of the Company.
Apart from Mr.Bharat Doshi, none of the other Directors, Key

Managerial Personnel (KMP) of the Company and relatives of
the Directors and KMP are, in any way, concerned or interested,
financially or otherwise, in the Resolution set out at Item No.13 of
the Notice except to the extent of their shareholding interest, if any,
in the Company.
In compliance with the requirements of the erstwhile section302 of

the Companies Act, 1956, an abstract of the terms of the appointment
of and remuneration payable to Dr.Goenka together with the
Memorandum of Concern or Interest was sent to the Members in
October, 2013. The other terms of remuneration including commission
payable to him are set out in the Special Resolution under Item No.16
of the Notice.
ITEM No. 14
Pursuant to sections196, 197 and all other applicable provisions

of the Act and the Companies (Appointment and Remuneration
of Managerial Personnel) Rules, 2014 (including any statutory
modification(s) or re-enactment thereof for the time being in
force) read with Schedule V of the Act, the appointment of and
remuneration payable to Dr.Pawan Goenka is now being placed
before the Members at the Annual General Meeting for their
approval by way of Special Resolution.
Life Insurance Corporation of India (LIC), has nominated

Mr.S.B. Mainak, Managing Director of LIC as its representative on the
Board of Directors of the Company in place of Mrs.D. Vijayalakshmi
who ceased to be a Director of the Company with effect from
5thJune, 2013.
Pursuant to the recommendation of the Governance, Nomination
and Remuneration Committee, the Board of Directors at its Meeting
held on 13thNovember, 2013 has appointed Mr.S.B. Mainak as an
Additional Director of the Company representing LIC with effect
from 13thNovember, 2013. He holds office upto the date of the
ensuing Annual General Meeting pursuant to section161 of the
Companies Act, 2013 and Article120 of the Articles of Association
of the Company. The Company has received a Notice in writing from
a Member alongwith the deposit of the requisite amount under
section 160 of the Companies Act, 2013 proposing his candidature for
the office of Director of the Company.
Your Directors recommend passing of the Resolutions at Item No.15

of the Notice as an Ordinary Resolution and Item No.16 of the Notice
as a Special Resolution.
Apart from Dr.Pawan Goenka, who would be interested in his
appointment and remuneration, none of the other Directors, Key
financially or otherwise, in these items of businesses, except to the
extent of their shareholding interest, if any, in the Company.
Mr.Mainak is the Chairman of LIC Nomura Mutual Fund Trustee

Company Private Limited and a Director in several companies, details
whereof are given in the Chapter on Corporate Governance in the
Annual Report.
The following additional information as required by ScheduleV to

the Companies Act, 2013 is given below:
I. General Information:
(i)
Nature of Industry:
The Company is, inter alia, in the business of manufacture
of different range of automotive vehicles, agricultural
tractors, implements, industrial engines, etc.
Mr.Mainak does not hold any Ordinary (Equity) Share in

the Company.
The Board is of the view that Mr.Mainaks knowledge and experience
will be of immense benefit and value to the Company and, therefore,
recommends his appointment to the Members.
(ii)
Date or expected date of commencement of commercial
production:
The Company was incorporated on 2ndOctober, 1945 and
started assembly of jeep type vehicles in the year 1949.
Except for Mr.S.B. Mainak, none of the other Directors, Key

financially or otherwise, in the Resolution set out at Item No.14 of
the Notice except to the extent of their shareholding interest, if any,
in the Company.
(iii)
In case of new companies, expected date of commencement
of activities as per project approved by financial institutions
appearing in the prospectus:
Not Applicable.
ITEM Nos. 15 and 16
The Board of Directors has pursuant to the approval of the

Governance, Nomination and Remuneration Committee of the Board
(the Committee) appointed Dr.Pawan Goenka as an Additional
Director of the Company with effect from 23rdSeptember, 2013.
(iv)
Financial performance based on given indicators as per
audited financial results for the year ended 31stMarch,
2014:
Particulars
Based on the recommendation of the Committee, the Board appointed

Dr.Pawan Goenka as the Executive Director for a period of 5(five)
years with effect from 23rdSeptember, 2013 to 22ndSeptember,
2018 and approved his remuneration, subject to the approval of
the Members by a Special Resolution to be obtained at the ensuing
Annual General Meeting of the Company.
Gross Turnover & Other Income

Net profit as per Statement of Profit & Loss
(After Tax)
Computation of Net Profit in accordance
with erstwhile section 309(5) of the
Companies Act, 1956
Net Worth
Dr.Goenka holds office upto the date of the ensuing Annual

General Meeting pursuant to section161 of the Companies Act, 2013
(the Act) and Article120 of the Articles of Association of the
Company. The Company has received a Notice in writing from a
(Rupees in
Crores)
43,838.17
3,758.35
4,487.74
16,791.19
(v)
Foreign investments or collaborators, if any:

Not Applicable.
7/3/2014 3:40:07 PM
II.
Information about the appointee:

It is proposed to authorise the Board (which term
shall be deemed to include any duly authorised Committee
thereof, for the time being exercising the powers conferred
on the Board by this Resolution) to revise the basic salary
payable to Dr.Pawan Goenka, within the abovementioned
scale of salary.
(i)
Background details:
Dr.Pawan Goenka is the Executive Director and President
Automotive and Farm Equipment Sectors of Mahindra
& Mahindra Limited. Dr.Goenka is a Bachelor of Science
in Mechanical Engineering from I.I.T., Kanpur. Post his
Engineering degree, he earned his Ph.D. from Cornell
University, USA. He is also a Graduate of the Harvard
Business School Advanced Management Program. He
worked at General Motors in Detroit, USA from 1979 to
1993 and is credited with pioneering research in engine
design and development. Thereafter, he joined Mahindra
& Mahindra Limited, as General Manager (R&D). During his
R&D tenure he led the development of the Scorpio SUV.
He was appointed COO (Automotive Sector) in April, 2003,
President (Automotive Sector) in September, 2005 and
President (Automotive & Farm Equipment Sectors) with
effect from April, 2010.

Taking into consideration the size of the Company,
the profile of Dr.Pawan Goenka, the responsibilities
shouldered by him and the industry benchmarks, the
remuneration proposed to be paid is commensurate with
the remuneration packages paid to similar senior level
counterpart(s) in other companies.

Dr.Goenka received the Outstanding International Advisor

Award from SAE in 1997, Charles L. McCuen Achievement
Award for the years 1991 and 1995 from General Motors,
Burt L. Newkirk Award for the year 1987, Extraordinary
Accomplishment Award from General Motors in 1986,
Distinguished Alumni Award from I.I.T. Kanpur in 2004.
III. Other Information:

(i)
Reasons of loss or inadequate profits:
Not applicable, as the Company has posted a net profit
after tax of Rs.3,758.35 crores during the year ended
31stMarch, 2014.
Dr.Goenka is on the Boards of several Mahindra Group

Companies in India and abroad.
(ii)
Past remuneration during the financial year ended

31stMarch, 2014:
(ii) Steps taken or proposed to be taken for improvement and
(iii)
Expected increase in productivity and profits in measurable
terms:
Not applicable as the Company has adequate profits.
Amount
(Rs. in lakhs)
Dr.Pawan Goenka
(vii)
Pecuniary relationship directly or indirectly with the
Company, or relationship with the managerial personnel,
if any:

Besides the remuneration proposed to be paid to him,
the Executive Director does not have any other pecuniary
relationship with the Company or relationship with the
managerial personnel.
Dr.Goenka is a past President of Society of Automotive

Engineers, India, and of ARAI Governing Council. He
was also the President of Society of Indian Automobile
Manufacturers (SIAM).
Name of Executive Director
(vi)
Comparative remuneration profile with respect to industry,
size of the Company, profile of the position and person
(in case of expatriates the relevant details would be with
respect to the country of his origin):
IV. Disclosures:
448.02
The information and Disclosures of the remuneration package

of the Whole-time Directors have been mentioned in the
Annual Report in the Corporate Governance Report Section
under the Heading Remuneration paid/payable to Managing
Director and Executive Director (Whole-time Directors) for the
year ended 31stMarch, 2014.
(iii)
Recognition or awards:

The information is already covered in the section
Background details.
(iv)
Job Profile and his suitability:

Dr.Goenka joined the Company as General Manager
(R&D) in the year 1993. During his R&D tenure he led the
development of the Scorpio SUV. He was appointed COO
(Automotive Sector) in April, 2003, President (Automotive
Sector) in September, 2005 and President (Automotive &
Farm Equipment Sectors) with effect from April, 2010.
Dr.Pawan Goenka satisfies all the conditions set out in Part-I

of ScheduleV to the Act as also conditions set out under
sub-section3 of section 196 of the Act for being eligible for
his appointment. He is not disqualified from being appointed as
Director in terms of section 164 of the Act.

Brief resume of Dr.Pawan Goenka, nature of his expertise,
name of companies in which he holds directorships and
memberships/chairmanships of Board Committees, shareholding
and relationships among directors inter-se as stipulated under
Clause49 of the Listing Agreement with the Stock Exchanges
are provided in the Corporate Governance Report forming part
of the Annual Report.

The Executive Director is responsible for the operations
and the affairs of the Company pertaining to his area.
Taking into consideration his qualifications and expertise
in relevant fields, the Executive Director is best suited for
the responsibilities currently assigned to him by the Board
of Directors.
(v)
Remuneration proposed:
Name of Executive Director
Scale of Salary
ITEM No. 17
Dr.Pawan Goenka
Rs. 10,32,300 per month in

the scale of Rs. 7,00,000 to
Rs. 15,00,000 per month
The Board of Directors, at its Meeting held on 30 thMay, 2014, on the

recommendation of the Audit Committee, approved the appointment
of Messrs N. I. Mehta, Cost Accountants, as Cost Auditors of the
10
7/3/2014 3:40:07 PM
Company for conducting the audit of the cost records of the

Company, if required, for the year ending 31stMarch, 2015 at a
remuneration of Rs.20,00,000 (Rupees Twenty Lakhs only) (excluding
all taxes and reimbursement of out of pocket expenses).
Pursuant to section148 of the Companies Act, 2013 read with the

Companies (Audit and Auditors) Rules, 2014, Members of a company
are required to ratify the remuneration to be paid to the cost auditors
of that company.
During the period under consideration i.e. 1st January, 2001 to

31st March, 2014, the share price of your Company has increased
from Rs.150.80 (Market Price as on 1st January, 2001) to Rs.980.70
(Market Price as on 31st March, 2014) providing a compounded
return in excess of 27.8% per annum (excluding dividend). This
return factors in the Bonus Issue made in September, 2005 in the
ratio of 1:1 and Sub-division of each Ordinary (Equity) Share of the
Company having a Face Value of Rs.10 each fully paid-up into 2 (Two)
Ordinary (Equity) Shares of the Face Value of Rs.5 each fully paid-up
made in March, 2010.
Share Price Movement:
Accordingly, consent of the Members is sought for passing an Ordinary

Resolution as set out at Item No. 17 of the Notice for ratification of
the remuneration payable to the Cost Auditors for conducting the
audit of the cost records of the Company, if required, for the financial
year ending 31st March, 2015.
None of the Directors, Key Managerial Personnel of the Company and
their relatives are, in any way, concerned or interested, financially or
otherwise, in the aforesaid Resolution except to the extent of their
shareholding, if any, in the Company.
Rationale for the proposed allotment:

While the increase in Share Price as above cannot fully be attributed
as the effect on account of the Schemes, it can be strongly argued
that the implementation of the Schemes has had a positive impact
on the Share Price movement of the Company. Moreover, this has
benefitted the eligible employees of the Company and has contributed
to increased employee morale and retention.
The Resolution at Item No.17 of the Notice is recommended by the

Directors to be passed as an Ordinary Resolution.
ITEM No. 18
As the global business environment is becoming increasingly
competitive, it is important to attract and retain qualified, talented
and competent personnel in the Company. Stock Options represent
a reward system based on the performance. They help companies to
attract, retain and motivate the best available talent. Stock Options
also provide a company with an opportunity to optimise its personnel
costs and provide Employees with an opportunity to participate in the
growth of the company.
Given this background and keeping in view the basic purpose

for which the Schemes were formulated and approved by the
Shareholders and in order to give further fillip to this initiative, it is
proposed that the Equity Shares held by the Trust be replenished to
the extent of outstanding options i.e. by way of an issue of 52,00,000
Ordinary (Equity) Shares of Rs.5 each to the Trust under the 2010
Scheme, so that the Trust has additional Shares to be in a position to
reward Eligible Employees suitably as may be recommended by the
Committee from time to time. With this proposed issuance, the Trust
would have around 5% of the capital of the Company available for
the purpose of grant of stock options to employees.
Accordingly, the Company had formulated the Mahindra & Mahindra

Limited Employees Stock Option Scheme2000 (the 2000 Scheme)
and the Mahindra & Mahindra Limited Employees Stock Option
Scheme2010 (the 2010 Scheme) (both the Schemes collectively
referred to as the Schemes).
The Board at its Meeting held on 30 thMay, 2014 has accepted the
recommendation of the Governance, Nomination and Remuneration
Committee, subject to the approval of the Members pursuant to
sections 42 and 62 of the Companies Act, 2013.
The brief particulars relating to both the Schemes as on 31stMarch,

2014 are as follows:

The Members of the Company had at their Meetings held on

31stJuly, 2000 and 28thJuly, 2004 approved issue and allotment of
55,24,219 Equity Shares and 19,55,814 Equity Shares respectively
under the 2000 Scheme. Accordingly, the Company had allotted
these shares to the Mahindra & Mahindra Employees Stock
Option Trust (the Trust) from time to time.
Pursuant to section 149(9) of the Companies Act, 2013, an Independent

Director shall not be entitled to any Stock Option.
Save as aforesaid, the Special Resolutions at Item Nos.10 and 11 of
the Notice approved at the 64th Annual General Meeting read with
the Explanatory Statement annexed to the Notice convening that
Meeting remain unaltered.
he Equity Shares allotted to the Trust as well as the Options

T
granted under the 2000 Scheme stood augmented on account
of the 1:1 Bonus Issue made in September, 2005 and further on
account of Sub-division of each Ordinary (Equity) Share of the
Company having a Face Value of Rs.10 each fully paid-up into
2(Two) Ordinary (Equity) Shares of the Face Value of Rs.5 each
fully paid-up made in March, 2010.
he Members of the Company had at their Meeting held on

T
28thJuly, 2010 approved issue and allotment of 1,73,53,034
Equity Shares under the 2010 Scheme. Accordingly, the Company
had allotted these shares to the Trust in January, 2011.
s of 31stMarch, 2014, the Trust has granted 2,00,88,466

A
Options under the Schemes to the Eligible Employees, out of
which 20,31,828 Options have lapsed. The net grant by the Trust
as on 31stMarch, 2014 stands at 1,80,56,638 Options.
s of 31stMarch, 2014 the Trust held 2.61 crore shares. As against

A
this shareholding, it has outstanding options of 0.52 crores.
A copy of the Extracts of the Explanatory Statement pursuant to

the erstwhile section173(2) of the Companies Act, 1956 annexed
to the Annual General Meeting Notice dated 29 thMay, 2010 and
a copy of the Resolutions adopted at the Annual General Meeting
held on 28thJuly, 2010 alongwith a copy of the 2010 Scheme will be
available for inspection by the Members at the Registered Office of
the Company between 10.00 a.m. and 12.00 noon on all working days
(except Saturdays, Sundays and Public Holidays) upto the date of the
Annual General Meeting.
The Directors and the Key Managerial Personnel (KMP) of the
Company who would be eligible or would qualify to join the 2010
Scheme may be deemed to be concerned or interested in this item
of business to the extent of the options that may be offered to them
under the 2010 Scheme.
11
7/3/2014 3:40:07 PM

their relatives are, in any way, concerned or interested, financially
or otherwise, in the Resolution set out at Item No. 19 of the Notice
except to the extent to any deposits that they may have placed with
the Company under its present Fixed Deposit Scheme.
Save as mentioned above, none of the other Directors of the Company

and relatives of the Directors and KMP are, in any way, concerned
or interested, financially or otherwise, in the aforesaid Resolution
except to the extent of their shareholding, if any, in the Company.
Your Directors recommend the Resolution set out at Item No.18 of
the Notice for adoption of Members as a Special Resolution.
The Board recommends the Special Resolution set out at Item No.19
of the Notice for approval by the Members.
ITEM No. 19
ITEM No. 20
The Company had a Fixed Deposit Scheme, pursuant to the provisions

of the Companies Act, 1956 read with the Companies (Acceptance
of Deposits) Rules, 1975, wherein it accepted/renewed unsecured
deposits from the Members of the Company and from public.
In terms of section 42 of the Companies Act, 2013 read with Rule

14 of the Companies (Prospectus and Allotment of Securities) Rules,
2014 (the Rules), a Company shall not make Private Placement of
its Securities unless the proposed offer of Securities or invitation to
subscribe to Securities has been previously approved by the Members
of the Company by a Special Resolution. In case of an offer or
invitation for offer of Non-Convertible Debentures, the Company can
pass a Special Resolution once a year for all the offers or invitations
to be made for such Debentures during the year.
Vide Notification dated 26thMarch, 2014, the Ministry of Corporate

Affairs (MCA) notified sections 73, 74(1) and 76 of the Companies
Act, 2013 (the Act) relating to the acceptance of Deposits by
companies from its Members and from public, to take effect from
1stApril, 2014. The Companies (Acceptance of Deposits) Rules, 2014
(the Rules) also came into force on 1stApril, 2014.
In order to augment resources for, inter alia, the ongoing capital

expenditure, long term working capital/short term working capital
and for general corporate purposes, the Company may offer
or invite subscription for securities including but not limited to
secured/ unsecured redeemable Non-Convertible Debentures and/
or Commercial Paper, in one or more series/tranches on private
placement, issuable/redeemable at discount/par/premium.
Under the Act only an eligible company is allowed to accept deposits

from persons other than its Members. An eligible company has been
defined in the Rules to mean a public company as referred to in subsection(1) of section 76, having a net worth of not less than one
hundred crore rupees or a turnover of not less than five hundred crore
rupees and which has obtained the prior consent of the company in
general meeting by means of a special resolution and also filed the
said resolution with the Registrar of Companies before making any
invitation to the Public for acceptance of deposits.
The Company seeks to pass an enabling resolution to borrow funds

from time to time by offer of securities including but not limited to
Non-Convertible Debentures and/or Commercial Paper for an amount
not exceeding Rs.2,500 crores at a discount or at par or at a premium
and at such interest as may be appropriate considering the prevailing
money market conditions at the time of the borrowing but not
exceeding 12% p.a.
The Act prescribes that any company inviting/accepting/renewing

deposits would have to obtain credit rating from recognised credit
rating agency. The Company will obtain credit rating for its fixed
deposit scheme from a recognised Credit Rating Agency and inform
the public about the rating given prior to inviting deposits from the
Public. The Company will also be taking deposit insurance towards
the unsecured Deposits as may be accepted by it.
Accordingly, consent of the Members is sought for passing a Special

Resolution as set out at Item No.20 of the Notice.
their relatives are, in any way, concerned or interested, financially
or otherwise, in the resolution set out at Item No.20 of the Notice.
Since the Act and the Rules would be applicable to the existing fixed
deposit scheme of the Company, it would be necessary to comply
with the Act and the Rules before commencing acceptance/renewal
of deposits from the Members and the public.
The Board recommends the Special Resolution set out at Item No.20
of the Notice for approval by the Members.
As per the Rules, in case of an eligible company which had accepted

or invited public deposits under the relevant provisions of the
Companies Act, 1956 and the Rules made under that Act and has
been repaying such deposits and interest thereon in accordance with
those provisions, the provisions of repaying the deposits within one
year from 1stApril, 2014 shall be deemed to have been complied
with, if the company complies with the requirements and continues
to repay such deposits and interest due thereon on due dates for the
remaining period of such deposit in accordance with the terms and
conditions and period of such Earlier Deposits.
By Order of the Board

NARAYAN SHANKAR
Company Secretary
Registered Office:
Mumbai - 400 001.
CIN
: L65990MH1945PLC004558
e-mail : investors@mahindra.com
Website : www.mahindra.com
Tel
: +91 22 22021031
Fax
: +91 22 22875485
Accordingly, consent of the Members is sought for passing a Special

Resolution as set out at Item No.19 of the Notice. This Resolution
enables the Board of Directors of the Company to accept/renew
deposits from the public and Members upto the permissible limits
laid down in the Rules.
30 th May, 2014
12
vakils
7/3/2014 3:40:08 PM
COMMITTEES OF THE BOARD
CHAIRMAN EMERITUS
BANKERS
Audit Committee
Mr. Deepak S. Parekh
Chairman
Mr. Nadir B. Godrej
Mr. M. M. Murugappan
Mr. R. K. Kulkarni
Mr. Bharat Doshi
Mr. Keshub Mahindra
Mr. Bharat Doshi
Bank of America N.A.

Bank of Baroda
Bank of India
Canara Bank
Central Bank of India
HDFC Bank Limited
Standard Chartered Bank
State Bank of India
Union Bank of India
AUDITORS
Mr. Nadir B. Godrej
Deloitte Haskins & Sells

Tower 3, 27th 32nd Floor,
Indiabulls Finance Centre,
Elphinstone Mill Compound,
Senapati Bapat Marg,
Elphinstone (W), Mumbai 400 013
Stakeholders Relationship Committee

Mr. A. K. Nanda
Chairman
Mr. Anand G. Mahindra
Mr. Bharat Doshi
Mr. R. K. Kulkarni
BOARD OF DIRECTORS
Chairman & Managing Director
Dr. Pawan Goenka
Executive Director
(Appointed w.e.f. 23rd September, 2013)
Governance, Nomination and

Remuneration Committee
Mr. Narayanan Vaghul
Chairman
Mr. Nadir B. Godrej
Mr. R. K. Kulkarni
Corporate Social Responsibility

Committee
Chairman
Dr. Pawan Goenka
Mr. Bharat Doshi
Mr. A. K. Nanda
Mr. R. K. Kulkarni
Dr. Vishakha N. Desai
Strategic Investment Committee

Chairman
Mr. Bharat Doshi
Mr. Nadir B. Godrej
Mr. Vikram Singh Mehta
Mr. Anupam Puri
Loans & Investment Committee
Chairman
Mr. Bharat Doshi
Mr. A. K. Nanda
Mr. R. K. Kulkarni
Research & Development Committee
Chairman
Dr. Pawan Goenka
Mr. Bharat Doshi
Mr. Nadir B. Godrej
8
Mr. A. K. Nanda
Mr. R. K. Kulkarni
Mr. Anupam Puri

Mr. S. B. Mainak
Nominee of Life Insurance Corporation
of India
(Appointed w.e.f. 13th November, 2013)
ADVOCATES
Khaitan & Co.,
One Indiabulls Centre,
13th Floor, 841, Senapati Bapat Marg,
Elphinstone Road, Mumbai 400 013
REGISTERED OFFICE
Mumbai 400 001
Mr. Narayan Shankar

Company Secretary
CONTENTS
Directors Report .......................................................................................................9
Management Discussion and Analysis ...................................................................33
Corporate Governance ............................................................................................51
Business Responsibility Report ...............................................................................75
Accounts ...................................................................................................................91
Statement pursuant to Section 212 .....................................................................145
Consolidated Accounts ..........................................................................................151
Directors
Report
Dear Shareholders
Your Directors present their Report together with the audited
accounts of your Company for the year ended 31stMarch, 2014.
Financial Highlights
(Rs. in crores)
Gross Income
Less: Excise Duty on Sales
Net Income
Profit before Depreciation, Finance
Costs, Exceptional items and Taxation
Less: Depreciation/Amortisation
Profit
before
Finance
Costs,
Exceptional items and Taxation
Less: Finance Costs
Profit before Exceptional items
and Taxation
Add: Exceptional items
Profit before Taxation
Less: Provision for Tax Current Tax
(including MAT credit entitlement)
Provision for Tax Deferred
Less:
Tax (Net)
Profit for the year
Balance of profit for earlier years
Less: Transfer to Debenture
Redemption Reserve
Profits available for appropriation
Less: General Reserve

Proposed Dividends

Income-tax on Proposed Dividend

Dividend for 2012-13 paid on
shares issued in June, 2013

Income-tax on Dividend Paid
Balance carried forward
* denotes amounts less than Rs. 50 lakhs
2014
43,838
2,612
41,226
2013
43,962
2,972
40,990
5,439
863
5,258
711
4,576
259
4,547
191
4,317
52
4,369
4,356
91
4,447
350
933
261
3,758
9,952
161
3,353
7,905
17
13,693
400
862
104
15
11,243
400
798
93
2
*
12,325
9,952
Indias macroeconomic situation as it entered Financial Year

2014 was extremely weak. Growth had dropped to 4.5%, fiscal
deficit and inflation were at uncomfortably high levels and
the countrys current account deficit was at an alarming 4.8%
of GDP leaving it extremely exposed to the global financial
turbulence triggered by the US Feds taper announcement,
in May, 2013. As fund managers scrambled for safe havens,
portfolio flows to India, given its macro fragility, witnessed
a sharp reversal. The rupee, as a consequence, plunged over
25% against the US dollar, stoking fears of a self-fulfilling
balance of payments crisis. Swift, defensive actions by the
Government and the RBI, however, helped turn the tide and
by the year end the Indian Rupee had stabilised, the current
account deficit had halved, the fiscal deficit was contained
and inflation, while still high, had moved back to single
digit levels.
Domestic economic activity, though, remained weak and
uninspiring through the year. While a robust monsoon
season provided strong support to agricultural output
and rural incomes, contra impact on demand stemming
from fiscal contraction, rising interest rates, stalling
infrastructure projects and, an increasingly uncertain business
regulatory environment, weighed heavily on the economy.
Manufacturing activity, as a result, witnessed a contraction in
2013-14, its worst performance in over 20 years, and overall
GDP growth dropped below 5% for a second successive
fiscal year.
Financial Performance
In the challenging times that the Indian Auto Industry is
currently passing through, with volumes shrinking, your
Company has registered a marginal growth of 0.57% in the
net income at Rs.41,226 crores in the year under review
as against Rs.40,990 crores in the previous year on the
back of a strong sales performance by its Farm Equipment
Division.
11
Consequent to this performance, the Profit for the year before

Depreciation, Finance Costs, Exceptional items and Taxation
recorded an increase of 3.44% at Rs.5,439 crores as against
Rs.5,258 crores in the previous year. Similarly, Profit after tax
clocked an increase of 12.08% at Rs.3,758 crores as against
Rs.3,353 crores in the previous year. Your Company continues
with its rigorous cost restructuring exercises and efficiency
improvements which have resulted in significant savings
through continued focus on cost controls, process efficiencies
and product innovations that exceed customer expectations in
all areas thereby enabling the Company to maintain profitable
growth in the current economic scenario.
Dividend
Your Directors are pleased to recommend a dividend of
Rs.13.50 per Ordinary (Equity) Share and also a Special
Dividend of Re.0.50 per Ordinary (Equity) Share aggregating
Rs.14 per Ordinary (Equity) Share of the face value of Rs.5
each, payable to those Shareholders whose names appear in
the Register of Members as on the Book Closure Date. The
Special Dividend is recommended in view of the profit made
by the Company on sale of part of its shareholding in long
term investments of the Company. The equity dividend outgo
for the Financial Year 2013-14, inclusive of tax on distributed
profits (after reducing the tax on distributed profits of Rs.42.97
crores on the dividends receivable from the subsidiaries during
the current Financial Year) would absorb a sum of Rs.965.81
crores [as against Rs.894.11 crores comprising the dividend
of Rs.12.50 per Ordinary (Equity) Share and also a Special
Dividend of Re.0.50 per Ordinary (Equity) Share aggregating
Rs.13.00 per Ordinary (Equity) Share of the face value of Rs.5
each and tax thereon paid for the previous year].
Performance Review
Automotive Division:
Your Companys Automotive Division recorded total sales of
4,34,505 vehicles and 64,510 three-wheelers as compared to
4,83,734 vehicles and 67,735 three-wheelers in the previous
year registering a de-growth of 10.2% in vehicle sales and a
de-growth of 4.8% in three-wheeler sales.
On the domestic sales front, your Company sold 2,54,344
Passenger Vehicles [including 2,19,421 Utility Vehicles (UVs),
25,189 Multi Purpose Vehicles (MPVs) and 9,734 Cars] which
is a de-growth of 18.1% over the previous years volumes of
3,10,706 Passenger Vehicles [including 2,63,925 UVs, 31,437
MPVs and 15,344 Cars]. In the commercial vehicle segment, your
Company sold 1,52,398 vehicles [including 29,223 vehicles <2T
12
GVW and 1,23,175 vehicles between 2-3.5T GVW] registering

a growth of 6.7% over the previous years volume of 1,42,797
commercial vehicles [including 39,911 vehicles <2T GVW and
1,02,886 vehicles between 2-3.5T GVW]. In the three-wheeler
segment, your Company sold 62,614 three-wheelers registering
a de-growth of 4.4% over the previous years volume of 65,510
three-wheelers.
The volume de-growth in most market segments is a reflection
of the prolonged slow-down faced by the Indian Automotive
Industry. In fact, the 9.6% de-growth of the Indian Automotive
Industry (excluding two-wheeler) is the worst ever since 1976.
Your Companys UV sales volume de-grew by 16.9%, but your
Company continued its leadership of the domestic UV market
by posting a market share of 41.7%. During this year, Bolero
once again crossed the milestone of 1 lakh sales in a year.
This is the third consecutive year that Bolero has achieved
this milestone. Bolero also retained the title of Indias largest
selling Sports Utility Vehicle (SUV) for the 8th consecutive
year. It is also the 5th highest selling passenger vehicle in India.
The Scorpio posted record sales since launch and strengthened
its iconic status with sales of over 50,000 units for the third
successive year. The XUV500 continued to be the customers
choice with over 30,000 sales in the year.
In the commercial vehicle segment, your Company strengthened
its product portfolio with two highly successful launches in the
Pik-Up truck segment The Bolero Maxitruck Plus and the New
Bolero Pik-Up. These successful launches resulted in a volume
growth of 19.7% and your Companys market share of the
Pik-Up segment now stands at 63.9% (a gain of 9.9%).
Pursuant to the approval of the Scheme of Arrangement
between Mahindra Trucks and Buses Limited (MTBL), a
wholly owned subsidiary of the Company and its Shareholders
and Creditors and Mahindra & Mahindra Limited which
has become effective from 30 thMarch, 2014, the erstwhile
Truck and Bus Division of MTBL has been demerged and
transferred into the Company and now forms a Division of
the Company.
In the Overseas market, your Companys volume de-grew
8.6% over the previous year. This de-growth was a result of
the difficult market conditions in the key markets of Sri Lanka,
South Africa and Chile. During the year under review, your
Company sold 27,763 vehicles [including 452 vehicles sourced
from the erstwhile Truck and Bus Division of MTBL] and 1,896
three-wheelers in the Overseas market as compared to 30,231
vehicles [including 209 vehicles sourced from the erstwhile
Truck and Bus Division of MTBL] and 2,225 three-wheelers

in the previous year.
in the retail segment and also made its entry into the Energy
Management Solutions space.
During the year under review, your Company sold 5,876

Light Commercial Vehicles (LCVs) and 2,285 Heavy
Commercial Vehicles (HCVs) [comprising of the erstwhile
Truck and Bus Division of MTBL] as compared to 8,925
LCVs and 2,977 HCVs in the previous year of the erstwhile
Truck and Bus Division of MTBL. During the year under
review, the overall Commercial Vehicle Industry (3.5Tonne to
49Tonne) was down by 23.2% and HCV Industry (25Tonne
to 49Tonne) was down by 24.2% as compared to the
previous year.
Management Discussion and Analysis Report
Spare parts sales for the year stood at Rs.1,427.81 crores

(including exports of Rs.92.98 crores) as compared to
Rs.1,190.30 crores (including exports of Rs.90.30 crores) in the
previous year, registering a growth of 20%.
Farm Division:
Your Companys Farm Division (including Swaraj Division)
recorded sales of 2,68,487 tractors as against 2,24,844 tractors
sold in the previous year, recording a growth of 19.4%.
In the Financial Year 2013-14, the Indian tractor industry
enjoyed good growth. The domestic market recorded sales
of 6,33,656 tractors as compared to 5,27,384 tractors in the
previous year, recording a growth of 20.2%.
Your Company performed marginally better than the tractor
industry with domestic sales of 2,58,339 tractors as compared
to 2,12,555 tractors in the previous year recording a growth
of 21.5%. Your Companys domestic market share now stands
at 40.6% as compared to 40.1% in the previous financial year,
thus completing 31 years of leadership in the Indian tractor
industry. Your Company exported 10,148 tractors which is a
decline of 17.4% over the previous year.
Beyond tractors, your Company has presence in crop care
solutions and distribution of seeds. The focus of this business is
to provide quality inputs and help improve farm productivity.
In the Financial Year 2013-14, this business saw a good growth
of 46% in terms of revenue.
Beyond agriculture, in the power generation space under the
Mahindra Powerol Brand, your Company earned a revenue
of Rs.775.5 crores in the current Financial Year as against
Rs.936.8 crores in the previous year. The decline in revenue
has mainly been the result of an Industry slowdown. While
retaining the leadership position in the genset market catering
to the telecom space, your Company has improved its presence
A detailed analysis of the Companys performance is discussed

in the Management Discussion and Analysis Report, which
forms part of this Annual Report.
Corporate Governance
Your Company has a rich legacy of ethical governance
practices many of which were implemented by the Company,
even before they were mandated by law. Your Company is
committed to transparency in all its dealings and places high
emphasis on business ethics.
A Report on Corporate Governance alongwith a Certificate
from the Statutory Auditors of the Company regarding
compliance with the conditions of Corporate Governance as
stipulated under Clause 49 of the Listing Agreement forms
part of this Annual Report.
Share Capital
During the year under review, your Company has allotted
19,11,628 Ordinary (Equity) Shares of Rs.5 each to the
Trustees of Mahindra & Mahindra Employees Stock Option
Trust. Consequently, the issued, subscribed and paid-up Share
Capital of the Company stood at Rs.308 crores comprising of
61,58,92,384 Ordinary (Equity) Shares of Rs.5 each fully paid-up.
Finance
The Financial Year 201314 saw the global economy operating
at differing speeds. While amongst the developed world,
the USA showed signs of recovery leading to the tapering of
Quantitative Easing, Europe witnessed signs of stabilisation.
The emerging economies which had experienced a slowdown
in the previous year, encountered new domestic and
international headwinds during the year 2013. While China
embarked on a soft landing programme by curtailing credit
led growth, countries like Brazil, Russia and South Africa
faced problems in commodity led growth apart from political
and social issues. The latest outlook published by IMF anticipates
a continued recovery for the global economy in the Calendar
Year 2014, showing upward growth for the developed world,
while emerging economies as a whole are expected to record
a moderate growth, less than the high growth rates they had
witnessed until a couple of years ago.
In the domestic front, tight liquidity conditions prevailed
throughout the year, while interest rates remained high,
13
mainly to contain inflationary pressures. During the year,

to counter the inflationary pressures, Reserve Bank of India
(RBI) increased repo rate by 50bps (net). The year also
witnessed high volatility in exchange rates, the impact of which
RBI countered by effectively using the swap window and by
interest rate management. By employing a combination of hikes
in short term interest rates and restricting access to liquidity
adjustment facility (LAF), RBI kept liquidity in the market on
a tight leash. However, even in tight liquidity conditions, good
companies with strong governance did not face a dearth of
liquidity and finance was available to them at very competitive
rates. Further, the current outlook on the domestic economy is
turning positive, with drags on growth bottoming out, inflation
moderating and reduction in current account deficit, auguring
well for the financial markets.
Your Company continued to focus on managing cash efficiently
and ensured that it had adequate liquidity and back up lines
of credit. During the course of the year, your Company repaid
Rs.474 crores of borrowings from internal accruals. The
Companys Bankers continue to rate your Company as a prime
customer and extend facilities/services at prime rates.
Your Company follows a prudent financial policy and aims
not to exceed an optimum financial gearing at any time.
The Companys total Debt to Equity Ratio was 0.24 as at
31stMarch, 2014. Your Company raised Rs.500 crores by way of
private placement of 9.55%, Listed, Rated, Unsecured, Senior,
Redeemable Non-Convertible Debentures with a 50 years
maturity, to part finance its various ongoing modernisation
and expansion programmes. The debenture issuance by your
Company was the first of its kind in the Indian debt market,
creating a benchmark 50year debt instrument. The issue was
dual rated by CRISIL Limited and ICRA Limited. CRISIL Limited
and ICRA Limited have respectively assigned AA+/Stable and
[ICRA]AA+ (stable) rating to these debentures indicating
high credit quality.
assigned your Company a Long-Term Issuer Rating of IND

AAA with a Stable Outlook. The recent rating upgrade is
an acknowledgement of the strong credit profile that the
Company has maintained over the years thereby offering it
flexibility to finance its future growth plans. The AAA rating
indicates highest degree of safety regarding timely servicing of
financial obligations and is also a vote of confidence reposed in
your Companys Management by the rating agency.
During the year the innovative treasury initiatives taken by the
Company earned recognition from the prestigious Treasury
Management International (TMI).
Investor Relations (IR)

In the continuous search for excellence, your Company continued
to engage with investors in many ways, including extensive
one on one meetings, telepresence meetings, participations
in investor conferences, quarterly earnings calls during the
year and an annual analyst meet in May, 2013. Your Company
interacted with 520 Indian and overseas investors and analysts
in all (excluding quarterly earnings calls) during the year. Your
Company continuously strove to improve IR engagement with
International and Indian investors and has set up feedback
mechanism to measure IR effectiveness. Structured concalls
and periodic investor/analyst interactions with the Chairman &
Managing Director and Business Heads were organised during
the year. Your Company has introduced an IR App for Investor
Relations which now can be conveniently accessed from handheld devices. A user friendly investor relations page on the
Companys corporate website ensures the benefit of easy
access to relevant information for investors.
Acquisitions and other matters

1. Demerger of the Truck and Bus Businesses of Mahindra
Trucks and Buses Limited
Your Company has been rated by CRISIL Limited, ICRA Limited

(ICRA) and Credit Analysis & Research Limited (CARE) for
its banking facilities under Basel II norms. While they have all
re-affirmed the highest credit rating for your Companys Short
Term facilities, CRISIL maintained the rating for your Companys
Long Term Banking facilities at AA+/Stable, ICRA maintained
the Long Term Rating of [ICRA]AA+ (stable) and CARE also
maintained the rating CARE AA+.

Mahindra Trucks and Buses Limited (MTBL), a wholly
owned subsidiary of your Company was engaged in the
businesses of designing, developing, marketing and
distribution of Light Commercial Vehicles (LCVs) and
Medium and Heavy Commercial Vehicles (M&HCVs)
including but not limited to (a) vehicles such as trucks,
buses, tippers and tractors and (b) license fees and
marketing service charges for lubricants and trading in
spare parts and accessories.
Your Company was also rated by India Ratings and Research

(Ind-Ra, a Fitch Group Company). Citing the resilience shown
by the Company over multiple business cycles over the last
19years as a key rating driver, India Ratings & Research has
MTBL, earlier known as Mahindra Navistar Automotives

Limited, was a Joint Venture between Navistar Inc. and
its affiliates (Navistar) and your Company. Navistar had
entirely exited from the Joint Venture in February, 2013.
14
Consequent to the divestment of Navistar from the Joint

Venture, your Company had assumed full control over the
activities of MTBL.

Your Company is already dealing in all segments of
automobile industry e.g. passenger vehicles, commercial
vehicles and three-wheelers. M&HCVs and LCVs would
be a perfect fit with the existing product portfolio of
the Company.

Due to the divestment of Navistar and in order to
consolidate, it was proposed to demerge the Truck and
Bus Businesses of MTBL into your Company. A Scheme
of Arrangement has been approved by the Honble High
Court on 7thMarch, 2014 whereby MTBL would demerge
the Truck and Bus Businesses into your Company. MTBL
being a wholly owned subsidiary of your Company, the
Honble High Court dispensed with the requirement of
filing an application by your Company and the consequent
processes, including Shareholders Meeting. The demerger
is effective from 30 thMarch, 2014. The appointed date
of the Scheme is 1stApril, 2013. As per the Scheme, your
Companys investment cost in MTBL stands reduced
proportionate to the net worth of Truck and Bus Businesses
vis--vis total net worth of MTBL.
2. New Investors in Mahindra Two Wheelers Limited
During the Financial Year 2013-14, your Company has sold
4,97,51,640 shares in Mahindra Two Wheelers Limited
(MTWL) to Kinetic Engineering Limited (KEL). As part
of its strategy to focus on building its existing businesses,
KEL has sold its entire stake to SAMENA Capital, a private
equity investment group focused on Asia and the Middle
East. Further, during the year, Emerging India Fund, a
fund managed by ICICI Investment Management Company
Limited participated in a preferential equity issuance by
MTWL. Post the above two transactions, your Company
now holds 88.46% in MTWL.
3. Buyout of minority stake in Mahindra Europe S.r.l.

As a part of its strategy to expand its automotive
operations in the European market, your Company had
appointed Mahindra Europe S.r.l. (ME Srl) erstwhile
Eurasia Motors in Italy, as a distributor of your Companys
vehicles. In December, 2005, your Company, through
Mahindra Overseas Investment Company (Mauritius)
Limited (MOICML) had acquired 80% of the equity
(Quota) capital of ME Srl. During the year under review,
your Company through MOICML has acquired the balance
equity (Quota) capital of 20% in ME Srl. Accordingly,
MOICML, a wholly owned subsidiary of the Company, now

holds 100% of the equity (Quota) capital of ME Srl.
4.
Mahindra Group and CIE Automotive forms Global
Alliance in Auto Components
It had always been your Companys stated intent to merge
all of its Auto Component subsidiaries into one listed entity
to provide size and scale and a one stop shop for its global
customers. Your Company is now in the process of executing
this vision much beyond the scale originally envisaged, by
forging a Global alliance partnership with CIE Automotive S.A.
(CIE). An agreement for this purpose was entered into on
15th June, 2013. The transaction leverages your Companys
presence in India and Europe with that of CIEs in Europe and
Latin America with a complementary set of customers thus
creating a Global Auto Component Alliance. The transaction
has various stages of execution. On completion of these
stages, your Company will hold 21.78%* of the paid-up
capital in the unified entity i.e. Mahindra CIE Automotive
Limited (the erstwhile Mahindra Forgings Limited). Your
Company through Mahindra Overseas Investment Company
(Mauritius) Limited (MOICML) is also the second largest
shareholder in CIE Automotive, S.A. of Spain, holding
13.5% of the Equity Share Capital. CIE, through Autometal
S.A. (downstream listed entity in Brazil) will be indirectly
holding 53.40%* of the paid-up capital in Mahindra CIE
Automotive Limited (Mahindra CIE) on completion of
the transaction.

* Estimated as of 30th May, 2014 and subject to listing

agreement regulations.
This transaction being complex in nature, required your

Company to also take some critical steps including:

1. Buyout of Mahindra Ugine Steel Company Limiteds

(MUSCO) stake in Mahindra Sanyo Special Steel
Private Limited (MSSPL) and additional land held by
MUSCO.
2. Sale of Stake by the Company in Mahindra Forgings

Limited (MFL)**, Mahindra Hinoday Industries
Limited (MHIL) and Mahindra Composites Limited
(MCL) to Participaciones Internacionales Autometal
Dos, S.L. (PIA 2), a downstream subsidiary created
by CIE Group.
3. Sale of stake by Mahindra Holdings Limited in MCL to

PIA 2.
4. PIA 2 acquires 26% stake in MCL and MFL respectively

via open offers to public shareholders.
15
5. Acquisition of 13.5% stake in CIE Automotive, S.A.
6. Schemes of Merger.
**
M&M holds 0.32% of the paid-up share capital of
Mahindra CIE as on 30th May, 2014.
In June, 2013, the Board of MCL approved the Scheme

of Merger (Composites Scheme) involving merger of
MCL with MFL. The approved share exchange ratio under
the said scheme is 100 Equity Shares of MCL for every
90Equity Shares of MFL.

Additionally, the individual Boards of MFL, MHIL,
MUSCO, Mahindra Gears International Limited (MGIL),
Mahindra Investments (India) Private Limited (MIIPL)
and Participaciones Internacionales Autometal Tres, S.L.
(PIA 3) approved an Integrated Scheme of Merger
(Integrated Scheme) of the respective companies into
MFL. The approved share exchange ratio of the said
Scheme is as follows:

(i)
110 Equity Shares of MFL for 100 Equity Shares
of MHIL;
(ii)
of MIIPL;
(iii)
of MGIL;
(iv)
of MUSCO;
(v)
of PIA 3.
The Appointed Date of the Schemes is proposed to be

1stOctober, 2013.
These Schemes are subject to the approval of the Honble
High Court.

All these investments have created value for all
Shareholders, including (as your Company is particularly
pleased to report) for all the minority Shareholders of all
the constituent companies.
5.
Mahindra Engineering Services Limited to merge with
Tech Mahindra Limited to boost Engineering Prowess
In order to create a unified engineering services Division
within the Mahindra Group with very strong aerospace
and automotive verticals, Mahindra Engineering Services
Limited, a subsidiary of your Company agreed to merge
with another Group Company, Tech Mahindra Limited on
29thNovember, 2013. The combined Division under Tech
16
Mahindra Limited would have benefits of operational

synergies in terms of economies of scale, single go-tomarket strategy, sourcing benefits, vendor rationalisation,
more focused operational efforts and enhanced depth and
breadth of capabilities, translating into increased business
opportunities and reduced expenses. The approved share
exchange ratio under the Scheme of Amalgamation
is 5Equity Shares of Tech Mahindra Limited for every
12Equity Shares of Mahindra Engineering Services Limited
held by your Company. The Appointed Date of the Scheme
is proposed to be 1stApril, 2013. The Scheme is subject to
the approval of the Honble High Court.
Stock Options
During the year under review, on the recommendation of
the Governance, Nomination and Remuneration Committee
(erstwhile Governance, Remuneration and Nomination
Committee) of your Company, the Trustees of the Mahindra
& Mahindra Employees Stock Option Trust have granted
4,50,382 Stock Options to Eligible Employees under the
Mahindra & Mahindra Limited Employees Stock Option
Scheme 2010. Further, no Stock Options have been granted
under the Mahindra & Mahindra Limited Employees Stock
Option Scheme 2000.
Details required to be provided under the Securities and
Exchange Board of India (Employee Stock Option Scheme and
Employee Stock Purchase Scheme) Guidelines, 1999 are set out
in Annexure I to this Report.
Industrial Relations
On the Industrial Relations front, a major feat was
accomplished by signing eight wage settlements across
Plants for the Automotive and Farm Equipment Sectors. The
Company was successful in maintaining a cordial industrial
relations environment across its manufacturing units. A slight
unrest was experienced at the Igatpuri Plant when the
workmen went on a 13day tool down from 9th21stApril,
2013. However, this did not affect the production schedule of
the Plant.
Employees have always been valuable assets of the Company
and major focus was laid in propagating proactive and
employee centric practices at the shop floor. There was a focus
on ensuring transparent communication of overall business
goals and efficient concern resolution mechanism. Over
the past few years, your Company has adopted a more
holistic approach to enhance capabilities of employees at
the shop floor which goes beyond mere technical skills.
Operators are trained and encouraged to generate ideas

for resolving quality concerns, reducing cost, ensuring safety
and improving productivity. For the year under review, the
workmen generated about 20ideas per person.
The proactive approach and quick response to situations
benefited the Company with zero production loss in the
Financial Year 2013-14 and a conducive work environment.
Safety, Occupational Health and Environment

The Safety and Occupational Health of its employees is
embedded as a core organisational value through crusading
initiatives of the Company. The Policy, inter alia, covers and
ensures safety of all stakeholders i.e. employees, public,
plant and machinery, ensures compliance on a monthly
basis, imparts education and training to all its employees
and stakeholders. External surveillance audits of its facilities
as per legal and other statutory requirements are conducted
regularly. Internal and external medical check-ups of its
employees and contractors are conducted to promote healthy
environment and sustainable activities.
Your Company continues to demonstrate a strong commitment
towards Safety, Health and Environment and as a part of
the same, multiple measures and actions are implemented
through Safety System Standardisation and Safety Culture
and Focus initiatives. Your Company has a well-established
Occupiers Safety, Occupational Health & Environmental
Policy. This is in line with the National Safety, Occupational
Health & Environmental Policy. Objectives and Targets
derived from the new amended Safety, Occupational Health
& Environmental Policy (SH&E Policy) is duly signed by the
new Executive Director & President and Occupier for the
Automotive and Farm Equipment Sectors. This Policy is
supported by various Management Programs. Hence there
is a strong commitment towards statutory compliance.
Road Safety Week, National Safety Day/Month and Fire Service
Week, World Environment Day, Sustainability Month and
Energy Conservation Week are being celebrated. Daily Work
Management (DWM) includes review of Safety, Occupational
Health & Environment systems, Behavioural Based Safety
(BBS) observations, Plant Officers observations and Safety
observations tours (SoT). Awareness (internal and external)
on Safety, Occupational Health and Environment training
with benchmarks on overall SH&E performance are conducted
in line with the Policy. Your Companys Plants continued
their commitment to create a culture of safe environment,
openness and improvement of the well being of its employees
and contract workmen by organising Occupational Health
Examination Camps, expert advice on health topics, special

medical check-ups, consultation and counselling, etc.
Through stakeholders engagement and employees
involvement, your Company demonstrates tracking the
objectives and targets as per the road map on the fundamentals
of triple bottom line approach. Various green projects
have been implemented by your Company in the areas of
abatement of Air Pollution, elimination, recycling and
reduction, conservation of water and solid waste management
with the goal of inculcating world class green supply
chain standards. Steps have been taken for reduction of
Green House Gases (GHG) in the areas of Inbound and
Outbound logistics.
Certifications/Recertifications
All Plants of the Automotive Division have been certified
with amended Standard for ISO 14001: 2004 & OHSAS
18001:2007. Your Companys commitment to the environment
stems from the Mahindra Groups abiding concern for social
issues. A healthy work place is provided to its employees and
environment friendly business is conducted. Besides, to create
a safe culture focused initiatives are carried out with the
underlying objective of risk free operations. Proactive sharing
of information across the value chain has also been initiated
to bring sensitivity to the Companys supplier and dealer
community.
External surveillance audit for Safety, Occupational Health &
Environment is conducted every year and all the Companys
Plants of the Automotive Division have been certified during
the year.
Safety, Occupational Health & Environment Management
System is well established in your Company and the periodic
structured reviews are undertaken to track the ongoing
progress in performance.
The Company has a Sustainability Reporting System on the
lines of the framework of GRI G3.1 Guidelines. Balanced Score
Cards are aligned to the goals, continuously reviewed and
revised, thus helping to improve ambient air quality, recycled
water and controlled waste.
Safety, Occupational Health and Environment practices are
followed by introducing Initiatives such as Human Error
Prevention, Visitor Management, improving culture through
education, training and communication. Standardisation is
brought about through generic and specific signages and
visuals at manufacturing facilities.
17
also place them in high growth service sector careers

after a 90 day intensive training course. In Financial
Year 2013-14 a total of 2,233 Scheduled Caste/Scheduled
Tribe students received training at the 5 MPSs in Pune,
Chennai, Patna, Chandigarh and Srinagar, in one of the
three areas of Hospitality Craft, Information Technology
Enabled Services (ITES - for BPOs & KPOs) and CRM. The
total number of MPs students trained since its inception
is 8,677. Post training, the MPS students have been
recruited by hospitality chains such as McDonalds, Pizza
Hut, KFC, Caf Coffee Day, Marriott Group and Hotel Le
Meridien, department stores such as Westside, Mom &
Me, BPOs and KPOs such as Wipro, Capgemini, Syntel,
HCL, TCS, Dell, Cognizant, Tech Mahindra and Mphasis.
The highlight of the placement process has been 100%
placement of students in lucrative jobs and a consistent
increase in average salary per batch to over Rs.10,000 per
month currently.
Your Company has received several SH&E & Sustainability

Awards and accolades for Safety Innovation.
Corporate Social Responsibility

Since its inception, the Company has been a socially responsible
Corporate making investments in the community which go
beyond any mandatory legal and statutory requirements. The
Core Purpose of the Company is to challenge conventional
thinking and innovatively use all our resources to drive positive
change in the lives of our stakeholders and communities
across the world, to enable them to RISE. In line with the
Companys Core purpose, the Corporate Social Responsibility
(CSR) vision is to focus efforts within the constituencies
of girls, youth and farmers by innovatively supporting them
through programs in the domains of education, health and
environment, while harnessing the power of technology. By
investing in CSR efforts in these critical constituencies that
contribute to nation building and the economy, the Company
will enable its stakeholders and communities to RISE.
Some of the major initiatives in which the Company has
invested during the Financial Year 2013-14 are described below:
A. Project Nanhi Kali for the Girl Child

The Mahindra Group has supported the education of
36,248 underprivileged girls through Project Nanhi Kali
which was started by the K. C. Mahindra Education
Trust (KCMET) in 1996 and is jointly managed by
KCMET and Naandi Foundation since 2005. The Nanhi
Kali sponsorship provides underprivileged girls not only
with academic support classes where concepts of Maths,
Science and Language are taught but also with material
support comprising uniforms, school bags, shoes, socks,
etc. which free their families from the hidden costs of
education and enable them to attend school with dignity.
In the last Financial Year, KCMET garnered support from
8,289 individuals and Corporates resulting in 91,537
underprivileged girls accessing quality remedial classes
across 9States of India. The significant impact of this is
evident from the fact that there was an 10% increase in
learning outcomes across all project areas and 90% of girls
remained in school to continue their education.
B. Mahindra Pride Schools Skilling Program for Youth

The Mahindra Pride Schools (MPS) through its oneof-a-kind livelihood training program continues to take
forward its vision to not only train youth from socially
and economically disadvantaged communities but
18
C. Scholarships and Grants

1. Mahindra All India Talent Scholarships Vocational

Education

Instituted in 1995, Mahindra All India Talent
Scholarships (MAITS) are awarded to students
from lower socio economic strata to enable them to
pursue a job oriented diploma course at a recognised
Government Polytechnic in India. Approximately
500scholarships are given every year to students
who undergo a three year course. In Financial Year
2013-14, 550 students were awarded the MAITS
and this scholarship has benefitted 6,904 students
till date.

2. K. C. Mahindra Scholarships for Post Graduate Studies

Abroad

The K. C. Mahindra Scholarship for Post Graduate
Studies Abroad is an interest free loan scholarship
which is awarded to deserving graduates interested
in pursuing their post graduate studies overseas.
This scholarship has been ongoing since 1956. In the
Financial Year 2013-14, 43 students were awarded
this interest free loan scholarship of Rs.2 lakhs each
and 3students were awarded Rs.8 lakhs each from
the K. C. Mahindra Fellows Fund. These scholarships
were given to students who gained admission in
renowned Universities such as Harvard, Yale, Stanford,
Massachusetts Institute of Technology, Carnegie
Mellon, London School of Economics, across a wide
variety of disciplines. The total number of scholarships

awarded till date is 1,115.

3. K. C. Mahindra United World College Scholarships

Till date 78 students have benefited from the
K. C. Mahindra United World College Scholarships
enabling them to study at the Mahindra United
World College of India. During Financial Year 2013-14,
10students were given these scholarships.

4. Mahindra Search for Talent Scholarship
This scholarship which rewards excellence in academics

has been set up in 37 institutions in India. In
addition, students who receive the Mahindra Search
for Talent Scholarship for two consecutive years also
receive the Honours Scholarship Award comprising
a cash prize of Rs.5,000 and a citation from
the Trust.
D. Mumbai Public School Initiative

The Mahindra Group supported 28 Mumbai Public
Schools (BMC English medium schools run by Naandi
Foundation) enabling 12,174 children to access quality
education. In the last Financial Year, the project had a
noteworthy impact including 13% increase in enrollment
numbers, 50% increase in Government teacher
recruitment and formation of 24 School Management
Committees.
E. Disaster Relief and Rehabilitation

In response to the catastrophic calamity caused by the
incessant rain and flash floods which struck Uttarakhand
in June, 2013, the Mahindra Group immediately
responded to the appeal put forth by the Chief Minister
and contributed Rs.1 crore to the Chief Ministers
Relief Fund (Uttarakhand). Further, employees of the
Mahindra Group donated one days salary to the Mahindra
Foundation with a specific intent to donate Mahindra
vehicles such as Scorpio, Trucks, Buses and Bolero Pik-Ups
to support rehabilitation efforts being undertaken
by the State Government of Uttarakhand. Apart from
these vehicles, 300solar lanterns, 150solar street lights
and a mobile DG set were also donated to the State of
Uttarakhand on 30 th December, 2013. Further, Rs.1 crore
was donated to the Maharashtra Chief Ministers Drought
Relief Fund to support the Government in its efforts
to counter the serious drought situation in the State
of Maharashtra.
The Company also supported the education of 1,000

underprivileged children in Udaipur and Rajsamand districts of
Rajasthan, through the NGO partner Seva Mandir.
Employee Social Options (Esops)

Esops stands for Employee Social Options. At Mahindra, all
employees are encouraged to contribute towards building a
sustainable society; one which is healthier, cleaner, greener
and more literate where people work with passion for social
objectives. Through the Esops program many Mahindra
employees are contributing towards making a difference
to society.
The Companys Esops program supports employees in creating
volunteering projects based on the needs of underprivileged
communities in and around their places of work. Employees
generate ideas for projects, prepare annual activity plans,
implement each activity and monitor results.
Amongst the notable Esops initiatives this year was the
Lifeline Express at Karad, Maharashtra where 2,614 patients
were treated by performing surgeries, giving medicines and
distribution of aids and appliances free of cost. The Company
also over-achieved the one million tree plantation (per year)
target of Mahindra Hariyali by planting more than 1.49 million
trees in the Financial Year 2014. Accolades such as Esops
Awards 2013, Esops Star Performers Awards, Group level Esops
Champions Meet, etc. recognised outstanding contributions
from employees.
The other Esops activities included numerous initiatives in the
areas of Education, Health, Environment, etc. that have a short
term as well as a long term social impact.
Esops is also a culture that the Mahindra Group has cultivated as
an ethic. Esops platforms and a set of structures and protocols
are created to make it easier and possible for every employee,
who wishes to make a contribution to society, to do so.
Sustainability Initiatives
During the year under review, the Sustainability Report for
the year 2012-13 was released. As in the earlier five years this
Report was also externally assured by KPMG with GRI checked
application level A+.
Your Company continued its Sustainability journey using
resource efficiency and social commitment as important drivers
of profitable growth. Retaining the focus on the Environmental,
Social and Governance (ESG) parameters, initiatives of
the previous years were consolidated and fresh ones were
taken up.
19
While energy conservation continued to hold center stage on

the sustainability agenda, water, an equally essential resource
was also retained on the radar. Relentless R&D on use of
light weighting alternate materials, start-stop technology,
low friction lubrication, downsizing engines to improve fuel
efficiency of the products, coupled with a host of energy
and water efficiency programs at the operations level, have
resulted in improved trends in eco-efficiency. Taking the water
conservation agenda beyond the organisation, your Company
entered into a collaboration with the Government of Madhya
Pradesh, to work on an Integrated Watershed Management
Project at Damoh. This partnership is structured to offer holistic
solutions for improving the quality of life of 20,000 Indians
across 32villages and while the project is still in progress, it
is already showing positive impact in farm productivity, water
availability and local employment.
financial parameters is a mandatory requirement for the top

100listed companies (based on market capitalisation) on the
National Stock Exchange of India Limited and BSE Limited.
The BRR of your Company for the year 2013-14 forms part
of this Annual Report, in compliance with the requirement
of SEBI.
Your Company also believes in actively collaborating with

other players in Indian Industry to respond to the countrys
energy and water challenges. Hence, your Company has signed
up to be a Member of the Working Group for developing
an India Specific Water Measurement Tool, led by World
Business Council for Sustainable Development (WBCSD) and
plans to be part of the India GHG Program initiated by World
Resources Institute (WRI) in collaboration with CII and
TERI-BCSD.
Directors
Complete details of the Sustainability performance for 2013-14

will be elaborated in the GRI Report which is under preparation
and will be ready for release shortly.
Your Companys consistent performance on the ESG dimensions
was recognised during the year, by way of:
Retaining its position in top 10 in the India 200 Carbon
Disclosure Leadership Index 2013.

Getting listed on the Dow Jones Sustainability Index
2013 under the Emerging Market Index.
The bestowal of the Sustainable Development Leadership
Award 2014 on Mr.Anand G.Mahindra by The Energy
& Research Institute (TERI) is a recognition of the
leaderships commitment to sustainable and responsible
business growth.
Business Responsibility Report

Your Company has continued including Business Responsibility
Report (BRR) as a part of the Companys Annual Report in the
prescribed format in compliance with Clause 55 of the Listing
Agreement, introduced by Securities and Exchange Board of
India (SEBI) in August, 2012. This disclosure on certain non20
Your Company strongly believes that sustainable and

inclusive growth is possible only when its performance on the
environmental and social front is aligned to the performance
on the economic front, ensuring continued growth and
development in business. Your Company is committed to
further leverage the Alternative Thinking mantra to achieve
high shareholder returns through good governance, customer
centricity, innovation, inclusive human development and by
being environmentally conscious.
Mr. Bharat Doshi, Executive Director & Group Chief Financial

Officer of the Company, after 40 illustrious years of service
in the Mahindra Group (of which 21years were as an
Executive Director) decided to step down from his executive
position with effect from the close of working hours on
13thNovember, 2013.
The Board has placed on record its deep appreciation of
Mr.Doshis immense contribution and valuable services
during his long association with the Company and
acknowledged Mr.Doshis outstanding experience and
expertise in serving the Mahindra Group since 1973 including
his contribution as an Executive Director of the Company from
1992 onwards.
Considering his experience and expertise, Mr.Bharat Doshi,
pursuant to the recommendation of the Governance,
Nomination and Remuneration Committee (earlier known as
Governance, Remuneration and Nomination Committee) was
appointed as an Additional Director of the Company with
effect from 14thNovember, 2013 at the Meeting of the Board
of Directors of the Company held on 13thNovember, 2013.
The Board of Directors has, pursuant to the recommendation
of the Governance, Nomination and Remuneration
Committee approved the appointment of Dr.Pawan Goenka
as an Additional Director of the Company with effect from
23rdSeptember, 2013 and also as the Executive Director
for a period of 5years from 23rdSeptember, 2013 to
22ndSeptember, 2018, subject to the approval of the Members
to be obtained at the ensuing Annual General Meeting of
the Company.
Dr.Goenka joined the Company as General Manager

(R&D) in the year 1993. During his R&D tenure he led the
development of the Scorpio SUV. He was appointed as COO
(Automotive Sector) in April, 2003, President (Automotive
Sector) in September, 2005 and President (Automotive & Farm
Equipment Sectors) with effect from April, 2010.
A brief resume of Dr. Goenka including his qualification,
nature of his expertise and names of companies in which
he holds Directorships and Memberships/Chairmanships
of Board Committees and shareholding is provided in
the Corporate Governance Report forming part of the
Annual Report.
As reported in the Annual Report for the Financial
Year 2012-13, the Company received an intimation from Life
Insurance Corporation of India (LIC) on 10 th June, 2013, to
the effect that Mrs.D. Vijayalakshmi had resigned from the
Board of the Company with effect from 5thJune, 2013.
Pursuant to the recommendation of the Governance,
Nomination and Remuneration Committee, the Board at its
Meeting held on 13thNovember, 2013, appointed Mr.S.B.
Mainak as an Additional Director of the Company representing
LIC with effect from 13thNovember, 2013, in place of Mrs.D.
Vijayalakshmi, such appointment to be valid upto the next
Annual General Meeting of the Company.
Mr. Mainak is a Chartered Accountant and is the Managing
Director of LIC since 9thJuly, 2013 and is also on the Boards of
various companies.
Mr.Doshi, Dr.Goenka and Mr.Mainak hold office upto the
date of the ensuing Annual General Meeting of the Company.
The Company has received Notices in writing from
Member(s) proposing Mr.Doshi, Dr.Goenka and Mr.Mainak
for appointment to the office of Directors at the forthcoming
Annual General Meeting.
In terms of the Articles of Association of the Company,
Mr.M.M. Murugappan, Mr.Narayanan Vaghul and Mr.A.K.
Nanda retire by rotation and are eligible for re-appointment.
However, Mr.Narayanan Vaghul and Mr.A.K. Nanda have
expressed their desire not to seek re-appointment. It is
proposed not to fill up the vacancies thereby caused.
Mr. Vaghul was appointed as a Director on the Board of the
Company with effect from 31stOctober, 1996 and has made
notable contributions towards effective functioning of the
Board. He has been acting as the Chairman of the Governance,
Nomination and Remuneration Committee of the Company
since 20 thDecember, 2000.
The Board placed on record its deep appreciation of the

invaluable counsel rendered by Mr. Vaghul to the Company.
The 18 years that Mr. Vaghul was on the Board of the Company
were critical years in the Companys history.
Mr. Vaghuls immense knowledge and financial expertise
helped the Board and the Company negotiate these
sweeping changes with boldness while at the same time
adhering strictly to sound financial discipline and ethical and
corporate values of the highest order.
Quote from Chairman Emeritus
Mr. Narayanan Vaghul joined the Board of M&M in 1996
and has shared his vast knowledge and experience with us
over many years. His unflinching adherence to the highest
standard of ethics and integrity while seeking excellence were
significant contributions by him as he chaired the Governance,
Nomination and Remuneration Committee.
Personally Mr. Vaghul is a valued and a trusted friend. His
wise guidance on prudent fiscal management combined with
his institution building instincts and formidable strategic skills
were invaluable to us. While he retires, his offer of support
to the management is most comforting. I wish him many
years of good health and happiness.
The Board placed on record its deep appreciation of the
valuable services rendered by Mr. Nanda during his tenure as a
Director of the Company.
Mr.Nanda, who is stepping down from the Board of the
Company after a total tenure of 22 years, brought to the
Board an ebullient and entrepreneurial spirit and a flair
for reasoned risk taking, combined with a strict adherence
to values and ethics. This rare combination of qualities
has added a valuable perspective and dimension to the
deliberations and decision making authority of the Board.
Although Mr. Nanda is retiring from the Board of the Company,
he continues to be actively associated with several other
initiatives of the Mahindra Group.
Quote from Chairman Emeritus
Mr Arun Nanda joined the Board of Directors in 1992, and
served as Executive Director till 2010 and as Non-Executive
Director thereafter. Through his entrepreneurial spirit,
commercial acumen and strong hands on approach, he has
imparted great value to the deliberations of the Board. During
the many years he served as Company Secretary he built
up an admirable rapport with our shareholders and served
them diligently.
21
I believe Arun embodies all that is best in the M&M culture.

Both as a Director and as a very long time employee and
colleague, he has spotted opportunities where others see
problems, and brought an innovative mind and a pioneering
direction to the strategies of the Board and the companies on
which he serves.
We are fortunate that even though he is stepping down from
the Board, he will continue to be associated with other areas
of the Mahindra Group.
In view of the provisions of section 149 of the Companies
Act, 2013, the Board of your Company has proposed the
appointment of Mr. M. M. Murugappan, Mr.DeepakS.
Parekh, Mr.NadirB. Godrej, Mr.R.K. Kulkarni, Mr.Anupam
Puri, Dr.VishakhaN. Desai and Mr.Vikram Singh Mehta as
Independent Directors at the ensuing Annual General Meeting
of the Company. The Company has received the requisite
Notices in writing proposing the appointment of them as
Independent Directors.
Directors Responsibility Statement

Pursuant to section 217(2AA) of the Companies Act, 1956,
your Directors, based on the representations received
from the Operating Management, and after due enquiry,
confirm that:
(i) in the preparation of the annual accounts, the applicable
accounting standards have been followed;
(ii)
they have, in the selection of the accounting policies,
consulted the Statutory Auditors and these have been
applied consistently and reasonable and prudent
judgments and estimates have been made so as to give a
true and fair view of the state of affairs of the Company
as at 31stMarch, 2014 and of the profit of the Company for
the year ended on that date;
(iii)
proper and sufficient care has been taken for the
maintenance of adequate accounting records in
accordance with the provisions of the Companies Act,
1956 for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities;
(iv)
the annual accounts have been prepared on a going
concern basis.
Subsidiary and Associate Companies

The Group Companies continue to contribute to the overall
growth of the Company. Major subsidiaries such as the
Groups Korean subsidiary Ssangyong Motor Company turned
22
in a significantly improved performance with a 20% growth in

revenue and posted a profit in the Financial Year 2013-14 as
compared to a loss in the previous year.
Tech Mahindra Limited, (TML) the Companys flagship
company in the IT Sector, has reported a consolidated revenue
at Rs.18,831.38 crores in the current year. During the year,
Satyam Computer Services Limited (earlier an associate
company) merged with TML. On a comparable basis, the
consolidated revenue of TML grew by 31.4% and Profit after
Tax grew by 54.9% as compared to the previous year.
The Groups finance company, Mahindra & Mahindra Financial
Services Limited (MMFSL), maintained a healthy growth of
business and profits despite slowdown in the auto industry
and continuing high cost of borrowings through control
of transaction cost and high collection efficiency levels.
It reported a total consolidated income of Rs.5,300.55 crores
during the current year as compared to Rs.4,112.96 crores
in the last year a growth of 28.9%. The consolidated
profit after tax of MMFSL for the Financial Year 2013-14 grew
from Rs.927.03 crores in the previous year to Rs.954.42 crores
in the current year.
The consolidated Group Profit for the year after exceptional
items, tax and after deducting minority interests is
Rs.4,666.93 crores as against Rs.4,099.20 crores earned
During the year under review, Mahindra Investments
(India) Private Limited, Mahindra Investments (International)
Private Limited, Mahindra Offgrid Services Private Limited,
Cleansolar Renewable Energy Private Limited, Brightsolar
Renewable Energy Private Limited, Mahindra Auto Steel Private
Limited, Mahindra North American Technical Center, Inc. and
Mahindra Electoral Trust Company became wholly owned
subsidiaries of your Company and Mahindra Telephonics
Integrated Systems Limited, Mahindra Asset Management
Company Private Limited, Mahindra Trustee Company Private
Limited, Gateway Housing Finance Corporation Limited,
Mahindra Construction Company Limited, became subsidiaries
of your Company.
During the year under review, Mahindra Homes Private Limited
(earlier known as Watsonia Developers Private Limited and
prior to that Watsonia Developers Limited), Mahindra Forgings
Limited, Mahindra Hinoday Industries Limited, Mahindra
Forgings International Limited, Mahindra Forgings Europe AG,
Gesenkschmiede Schneider GmbH, Jeco-Jellinghaus GmbH,
Falkenroth Umformtechnik, GmbH, Stokes Group Limited,
Stokes Forgings Dudley Limited, Stokes Forgings Limited,
Mahindra Forgings Global Limited, Scheneweiss & Co. GmbH,

Ssangyong (Yizheng) Auto Parts Manufacturing Company
Limited, MHR Hotel Management GmbH, BAH Hotelanlagen
AG, ceased to be subsidiaries of your Company.
Subsequent to the year end, Gateway Housing Finance
Corporation Limited and Mahindra Holidays and Resorts USA
Inc. ceased to be subsidiaries of your Company.
During the year, Mahindra Navistar Automotives Limited has
changed its name to Mahindra Trucks and Buses Limited and
Mahindra Navistar Engines Private Limited has changed its
name to Mahindra Heavy Engines Private Limited.
The Statement pursuant to section212 of the Companies
Act, 1956 containing details of the Companys subsidiaries
is attached.
In accordance with the General Circular issued by the Ministry
of Corporate Affairs, Government of India, the Balance Sheet,
Statement of Profit and Loss and other documents of the
subsidiary companies are not being attached with the Balance
Sheet of the Company. The Company will make available
the Annual Accounts of the subsidiary companies and the
related detailed information to any Member of the Company
who may be interested in obtaining the same. Further, the
Annual Accounts of the subsidiaries would also be available
for inspection by any Member at the Head Office of the
Company and at the Office of the respective subsidiary
companies, during working hours upto the date of the Annual
General Meeting.
Consolidated Financial Statements

The Consolidated Financial Statements of the Company and
its subsidiaries, prepared in accordance with Accounting
Standard AS21 form part of this Annual Report.
The Consolidated Financial Statements presented by the
Company include the financial results of its subsidiary
companies, associates and joint ventures.
Auditors
Messrs. Deloitte Haskins & Sells, Chartered Accountants, retire
at the conclusion of the ensuing Annual General Meeting. They
have been Statutory Auditors of the Company since Financial
Year 2008 i.e. for a continuous period of 7years including
Financial Year 2014. In terms of the Companies Act, 2013 (the
new Act) and the Rules framed thereunder, it is proposed to
appoint them as Statutory Auditors of the Company to hold
office from the conclusion of the ensuing Annual General
Meeting, until the conclusion of the 71stAnnual General

Meeting of the Company to be held in the Year 2017 (subject
to ratification of their appointment by the Members at every
Annual General Meeting held after the ensuing Annual
General Meeting).
As required under the provisions of section 139(1) of the
new Act, the Company has received a written consent from
Messrs. Deloitte Haskins & Sells, Chartered Accountants to
their appointment and a Certificate, to the effect that their
re-appointment, if made, would be in accordance with the
new Act and the Rules framed thereunder and that they satisfy
the criteria provided in section 141 of the new Act.
The Members are requested to elect Auditors as aforesaid and
fix their remuneration.
Cost Auditors
As per the Order of the Central Government and in
pursuance of section 148 of the Companies Act, 2013, your
Company carries out an audit of its cost records. The due
date for filing of the Cost Audit Report with the Ministry of
Corporate Affairs for the Financial Year ended 31stMarch,
2013, was 180 days from the closure of the Companys
Financial Year. The combined Cost Audit Report for the Farm
Equipment Sector and Motor Vehicles for the Financial Year
ended 31stMarch, 2013 was filed on 26thSeptember, 2013
in the XBRL format. The Central Government approved the
appointment of M/s.N.I. Mehta & Co., Cost Accountants
as Cost Auditors for conducting Cost Audit for the Financial
Year 2013-14.
Pursuant to section 148 of the Companies Act, 2013, the Board
of Directors on the recommendation of the Audit Committee
appointed M/s.N.I. Mehta & Co., Cost Accountants, as the
Cost Auditors of the Company for the Financial Year 2014-15.
M/s.N.I. Mehta & Co. have confirmed that their appointment
is within the limits of section 139(9) read with section 141(3)(g)
of the Companies Act, 2013 and have also certified that they
are free from any disqualifications specified under sections
141(3) and 141(4) read with proviso to section 148(3) of the
Companies Act, 2013.
The Audit Committee has also received a Certificate from the
Cost Auditors certifying their independence and arms length
relationship with the Company.
Public Deposits and Loans/Advances

Out of the total 8,825 deposits of Rs.7,075.63 lakhs from the
Public and Shareholders as at 31st March, 2014, 104deposits
23
amounting to Rs.42.56 lakhs had matured and had not

been claimed as at the end of the Financial Year. Since then,
18 of these deposits of the value of Rs.5.45 lakhs have
been claimed.
manufacturing activity and economic growth, as, seizing the

historic opportunity before it, the Government strives to
fulfill the development with jobs agenda laid out in its
election manifesto.
The Company has discontinued the Fixed Deposits Scheme

for 36 months with effect from the close of office hours on
31stJanuary, 2014 and has also discontinued acceptance of
Fixed Deposits with effect from 1stApril, 2014.
While El Nino risks cloud the immediate future, it is expected,

premised on the reasons outlined above, that the economy
will witness a nascent, infrastructure activity-led recovery in
the current year, followed by stronger, more broad based
consumption-led growth through Financial Year 2016, leading
to a deeper, investment-led economic cycle taking root in
2016-17, with growth reverting to levels of 7% or more by the
end of that year.
The particulars of loans/advances and investment in its own

shares by listed companies, their subsidiaries, associates,
etc., required to be disclosed in the Annual Accounts of the
Company pursuant to Clause 32 of the Listing Agreement are
furnished separately.
Current Year
During the period 1stApril, 2014 to 29thMay, 2014,
60,323vehicles were despatched as against 60,067vehicles
during the corresponding period in the previous year. During
the same period, 44,849tractors were despatched as against
43,103tractors despatched during the corresponding period
Looking forward, your Company believes that the economy
has weathered the worst and is now poised for a decisive,
albeit gradual, turnaround in growth. There are several
factors that underlie the current optimism. First, the countrys
macro economic indicators are in far-better shape today than
they were a year ago, making it much more resilient to risks
emanating from US Feds monetary policy actions. Second,
with economic recovery in developed countries gaining
strength and the Indian Rupee more competitively valued
than before, exports are likely to witness a robust pick-up
in the current year. Last, but perhaps most important, given
the strong mandate delivered by the recently concluded Lok
Sabha elections, swifter and more decisive policy actions are
expected to be undertaken by the Central Government in the
coming months, with special attention being paid to reviving
24
Energy Conservation, Technology Absorption and

Foreign Exchange Earnings and Outgo
Particulars required to be disclosed under the Companies
(Disclosure of Particulars in the Report of Board of Directors)
Rules, 1988 are set out in AnnexureII to this Report.
Particulars of Employees
The Company had 265 employees who were in receipt of
remuneration of not less than Rs.60,00,000 during the year
ended 31stMarch, 2014 or not less than Rs.5,00,000 per
month during any part of the said year. However, as per
the provisions of section 219(1)(b)(iv) of the Companies Act,
1956, the Directors Report and Accounts are being sent to
all the Members of the Company excluding the Statement of
particulars of employees. Any Member interested in obtaining
a copy of the Statement may write to the Company Secretary,
whereupon a copy would be sent.
For and on behalf of the Board
ANAND G. MAHINDRA
Mumbai, 30 th May, 2014
ANNEXURE I TO THE DIRECTORS REPORT FOR THE YEAR ENDED 31ST MARCH, 2014
Information to be disclosed under the Securities and Exchange Board of India (Employee Stock Option Scheme and Employee Stock
Purchase Scheme) Guidelines, 1999:
a
Options
granted
Mahindra & Mahindra Limited Employees Stock Option Scheme - 2000 (2000 Scheme) 1,52,00,898
Mahindra & Mahindra Limited Employees Stock Option Scheme - 2010 (2010 Scheme) 48,87,568
The
pricing
formula
2000 Scheme
2010 Scheme
1st
Tranche
2nd
Tranche
3rd
Tranche
4th
Tranche
5th
Tranche
6th
Tranche
7th
Tranche
8 th
Tranche
9 th
Tranche
10 th
Tranche
11th
Tranche
1st
Tranche
2nd
Tranche
3rd
Tranche
4th
Tranche
Average
price
preceding
the
specified
date 27th
September,
2001
Average
price
preceding
the
specified
date
30 th May,
2003
Discount
of 5.13%
on the
average
price
preceding
the
specified
date
31st May,
2004
Discount
of 4.85%
on the
average
price
preceding
the
specified
date
30 th May,
2005
Average
price
preceding
the
specified
date 14th
September,
2005
Discount
of 5.02%
on the
average
price
preceding
the
specified
date
29 th May,
2006
Discount
of 4.89%
on the
average
price
preceding
the
specified
date 13 th
September,
2006
Discount
of 4.97%
on the
average
price
preceding
the
specified
date
30 th July,
2007
Discount
of 5.03%
on the
average
price
preceding
the
specified
date 4th
August,
2008
Discount
of 4.97%
on the
average
price
preceding
the
specified
date
30 th July,
2009
Discount
of 4.98%
on the
average
price
preceding
the
specified
date 7th
August,
2012
Options
issued
at Par
specified
date
29 th
October,
2010
Options
issued
at Par
specified
date 9 th
December,
2011
Options
issued
at Par
specified
date
25th
October,
2012
Options
issued
at Par
specified
date
13th
November,
2013
Average price
Average of the daily high and low of the prices for the Companys Equity Shares quoted on BSE Limited during 15 days
preceding the specified date.
The specified
date
Date on which the Governance, Nomination and Remuneration Committee decided to recommend to the Mahindra &
Mahindra Employees Stock Option Trust (Trust), the grant of Options.
Options vested
2000 Scheme 1,41,17,126

2010 Scheme 21,45,174
Options exercised
2000 Scheme 1,12,54,748

2010 Scheme 15,95,815
The total number of shares

arising as a result of exercise
of option
2000 Scheme 45,88,703 Equity Shares of Rs.10 each. These were transferred from the Trust to the Eligible Employees prior
to sub-division of the Face Value of Equity Share from Rs.10 to Rs.5.
2000 Scheme 66,66,045 Equity Shares of Rs.5 each. These were transferred from the Trust to the Eligible Employees during
the period 1st April, 2010 to 31st March, 2014.
2010 Scheme 15,95,815 Equity Shares of Rs.5 each. These were transferred from the Trust to the Eligible Employees during
the period 1st April, 2011 to 31st March, 2014.
Options lapsed
2000 Scheme 16,00,530

2010 Scheme 4,31,298
Variation of terms of options
At the Sixty-first Annual General Meeting of the Company held on 30 th July, 2007, 2000 Scheme was amended to provide for
recovery from Eligible Employees, the fringe benefit tax in respect of Options which are granted to or vested or exercised by
the Eligible Employees on or after 1st April, 2007.
Money realised by
exercise of options
2000 Scheme Rs. 2,78,46,02,712

2010 Scheme Rs. 79,79,075
This amount was received by the Trust.
Total number of
options in force
2000 Scheme 23,45,620

2010 Scheme 28,60,455
Employee-wise details of
options granted to:
(i) Senior managerial personnel As per Statement attached
25
(ii) A
ny other employee who
receives a grant in any one
year of option amounting
to 5% or more of option
granted during that year
2000 Scheme
Names
2010 Scheme
Options granted Names

during the
year ended 31st
March, 2004*
Options granted Names

during the
year ended 31st
March, 2005*
Options granted
during the
year ended 31st
March, 2014
Mr. Raghunath Murti 15,000
Mr. Pranab Datta
15,240
Mr. Rajesh Jejurikar
36,901
Mr. Hemant Luthra
Mr. Rajeev Dubey
15,000**
Mr. Ramakrishna
Subbaraman
23,146
15,240
Mr. Ramesh lyer
25,920
Mr. Allen Sequeira
10,160
Mr. Prince M.
Augustin
5,080
* The Options granted stand augmented by an equal number of Options and

the Exercise Price stands reduced to half on account of the 1:1 Bonus Issue
made in September, 2005.
** The Options granted and outstanding as of 30 th March, 2010, stand augmented
by an equal number of Options and the Exercise Price stands reduced to half
on account of the sub-division of the Face Value of Equity Share from Rs.10
to Rs.5.
(iii) I
dentified employees who Nil
were
granted
option,
during any one year, equal
to or exceeding 1% of the
issued capital (excluding
outstanding warrants and
conversions) of the company
at the time of grant
k
Diluted Earnings Per Share (EPS) Rs. 61.07

pursuant to issue of shares on
exercise of option calculated
in accordance with Accounting
Standard (AS) 20 Earnings per
Share
Where the company has

calculated
the
employee
compensation cost using the
intrinsic value of the stock
options, the difference between
the employee compensation
cost so computed and the
employee compensation cost
that shall have been recognised
if it had used the fair value of
the options, shall be disclosed.
The impact of this difference
on profits and on EPS of the
company shall also be disclosed.
Weighted-average
exercise
prices and weighted-average
fair values of options shall be
disclosed separately for options
whose exercise price either
equals or exceeds or is less than
the market price of the stock.
26
The Company has calculated the employee compensation cost using the intrinsic value of stock options. Had the fair
value method been used, in respect of stock options granted on or after 30 th June, 2003, under 2000 Scheme and
2010 Scheme, the employee compensation cost would have been lower by Rs.2.70 crores, profit after tax higher by
Rs.2.70 crores and the basic and diluted earnings per share would have been higher by Re.0.05 and Re.0.04 respectively.
2000 Scheme
Options Grant
Date
Exercise price
(Rs.)
2010 Scheme
Fair value
(Rs.)
Options Grant
Date
Exercise price
(Rs.)
Fair value
(Rs.)
13th
November,
2013
5.00
850.46
A description of the method and

significant assumptions used during
the year to estimate the fair values
of options, including the following
weighted-average information:
(i)
2000 Scheme
2010 Scheme
The fair-value of the stock options granted under

2000 Scheme have been calculated using BlackScholes Options pricing Formula and the significant
assumptions made in this regard are as follows:
The fair-value of the stock options granted under

2010 Scheme have been calculated using BlackScholes Options pricing Formula and the significant
assumptions made in this regard are as follows:
8.83%
(ii) expected life,
risk-free interest rate,
3.25 years
(iii) expected volatility,
31.59%
(iv) expected dividends, and
1.45%
(v)
the price of the underlying
share in market at the time of
option grant.
Rs. 895.35
STATEMENT ATTACHED TO ANNEXURE I TO THE DIRECTORS REPORT FOR THE YEAR ENDED 31ST MARCH, 2014
Name of Senior Managerial
Persons to whom Stock Options
have been granted
Mr. Bharat Doshi
2000 Scheme
2010 Scheme
Options
granted in
December,
2001*
Options
granted in
June, 2005**
($)
Options
granted in
October, 2005
(#)
Options
granted in
September,
2006* ($$)
Options
Options
Options
granted in
granted in
granted in
July, 2007* August, 2008*
August,
($$$)
($$$$) 2012 ($$$$$)
Options
granted in
January, 2011
($$$$$$)
1,00,000
*10,000***
Nil
11,345***
8,362***
29,039***
Nil
71,080
Dr. Pawan Goenka
25,290
*7,500
*15,000***
*11,345***
12,543***
37,336***
Nil
71,080
20,000
*5,000
Nil
Nil
Nil
Nil
Nil
Nil
Mr. Nadir B. Godrej
20,000
*5,000
Nil
Nil
Nil
Nil
Nil
Nil
20,000
*5,000
Nil
Nil
Nil
Nil
Nil
Nil
1,00,000
*10,000
Nil
11,345***
8,362***
24,890***
Nil
Nil
20,000
*5,000
Nil
Nil
Nil
Nil
Nil
Nil
Mr. R. K. Kulkarni
20,000
*5,000
Nil
Nil
Nil
Nil
Nil
Nil
Mr. Anupam Puri
Mr. A. K. Nanda
20,000
@5,000***
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
10,000
Nil
Nil
Nil
Nil
Nil
Nil
Nil
10,000
Nil
@ unexercised options lapsed

Options granted on
Vesting period
Exercise period
Exercise price
($)
June, 2005
Already vested in June, 2006
Within five years from the date of vesting
**Rs. 454 per share***
(#)
October, 2005
Already vested in October, 2006
Within five years from the date of vesting
Rs. 361 per share***
($$)
September, 2006
Four equal instalments in September,

2007, 2008, 2009 and 2010 respectively
On the date of vesting or within five years

from the date of vesting
($$$)
July, 2007
Four equal instalments in July, 2008,

2009, 2010 and 2011 respectively

($$$$)
August, 2008
Four equal instalments in August, 2009,


($$$$$)
August, 2012
Four equal instalments in August, 2013,


($$$$$$) January, 2011
Five equal instalments in January, 2012,

2013, 2014, 2015 and 2016 respectively
On the date of vesting or within six months

Rs. 5 per share
* All the above Options have been exercised.

** The Options granted stand augmented by an equal number of Options and the Exercise Price stands reduced to half on account of the 1:1 Bonus Issue made
in September, 2005.
*** Further, the number of Stock Options granted and outstanding as on 30 th March, 2010, stands augmented by an equal number of Options and Exercise Price
stands reduced to half on account of Sub-division of each Ordinary (Equity) Share of the Company having a Face Value of Rs.10 each fully paid-up into 2 (Two)
Ordinary (Equity) Shares of the Face Value of Rs.5 each fully paid-up.
27
ANNEXURE II TO THE DIRECTORS REPORT FOR THE YEAR ENDED 31ST MARCH, 2014
PARTICULARS AS PER THE COMPANIES (DISCLOSURE OF
PARTICULARS IN THE REPORT OF BOARD OF DIRECTORS)
RULES, 1988 AND FORMING PART OF THE DIRECTORS REPORT
FOR THE YEAR ENDED 31ST MARCH, 2014
(A) Conservation of Energy

Your Company has considered Sustainability as one of the
strategic priority across all processes. Various initiatives
are considered for reducing the overall carbon footprint.
Continuous efforts are put in for conservation of energy
and natural resources. The Company has been consciously
making efforts year on year towards improving the energy
performance. Energy efficiency improvement initiatives
have been implemented across all the Plants and Offices
by undertaking various energy conservation projects.

Your Company ensures strict compliance with all the
statutory requirements and has taken several sustainable
steps voluntarily to contribute towards better environment
such as:

Reduction
in Special carbon footprint inspite of

production being increased continuously.

Effective

Reduce,

Reduction

Saving
effluent and Sewerage treatment, recycle

and reuse of water.
Reuse, Recycle of Waste and Eco-friendly
waste disposal.
in water footprint and encouraging rain
water harvesting.
of natural resources like Electricity, Oil, Fuel,
etc.

Use
of Renewable Energy in Manufacturing.
Use
of natural lighting and natural ventilation.
(a) During the year, the Company has taken the following
initiatives for conservation of energy:
(i)
Engineering Initiatives

Installation of solar street lights and LED
Lamps.

Replacement of conventional lamps with
energy efficient Mag-coupled Magnetic
lamps.
Elimination of electrical heating system by

providing waste heat recovery system on
furnace exhaust.
Installation of heat pump on washing

machine thereby eliminating electrical
heating.
Installation of waste heat recovery on oven
exhaust to preheat the combustion air.
28

Installation of gas ionizers for burners of
heat treatment furnaces and thermopacs in
paint shop.
Replacement of old inefficient pumps with
energy efficient pumps at various locations.
Installation of VFDs at select locations.
Installation of air demand controller in paint
shop.
Voltage optimisation for lighting load.
Transparent FRP sheets on roof.

DG set voltage optimisation and Power
factor improvement.
(ii)
Process Improvement
Cycle Time reduction in various manufacturing
processes through introduction of new
technology and Kaizens.
Optimising temperature settings in HVAC

units and automatic temperature controls.
PNG consumption optimisation by reducing
the skid weight at PT-CED.
Eliminating electrical heating system for

sand solidification by replacing the hold box
process with cold box process.
Optimising the loading of parts on furnace
by modification of loading tray.
Ducting modification to reduce frequency of
ASU blower in paint shop.
Load Carrier trolley length optimisation

and Processing 4 passengers per skid
(Zaheerabad).
Optimisation of frequency of Roller Motor

in TCF.
Piping modification for Shower Testing along
with installation of VFD.

Improvements through small group activities

Auto Switching for Lighting for energy
optimisation.
Centralised Switches at Offices for Zero

Consumption during night periods.
Timers for blowers, fans and lights.
Lighting sensor auto-switches for lighting.
Energy Savers for Air-conditioners.
(iii)
Initiatives Generating Awareness on Energy
Consumption.
Energy Conservation Week Celebration at all
Plants.
Energy Conservation Oath at all locations.
E-mailers and Wallpapers for awareness.

Display of posters and slogans on energy
conservation.
Conducted slogan, poster and suggestion

competition for employees on energy
efficiency.
Release of Mahindra Energy Management

System Assessment model.
Energy Quiz and Suggestion Competition.

Publication and release of E-Booklet
containing ENCON initiatives.
Extensive involvement of shop floor

operating teams in improvement activities
and projects.
Spreading the importance of energy

conservation in nearby schools and colleges.
Energy conservation poster competition for
children of employees.
Energy audit at few key suppliers.
Air Leakage month celebrated at Haridwar
with Tags distributed to Operators to reduce
Air Leakage.
Gemba audits to identify the scope of energy
conservation.

(b) Additional investments and proposals, if any, being

implemented for reduction of consumption of energy
Purchasing of power from Open Access (OA) at

Zaheerabad instead of running DG resulting in
diesel consumption reduction and cost saving.
Installation of small 66 kw solar power plant and
wind mill in parking area at Igatpuri.
Natural Light pipe installation at Nashik.

Use of Alternate Fuel LNG in place of LPG
(Nashik).

(c)
Impact of the measures at (a) & (b) above for
reduction in energy consumption and consequent
impact on the cost of production of goods

The measures taken have resulted in lower energy
consumption.
Specific Electrical energy consumption is reduced by
3.4% over the previous year and Specific Thermal
energy consumption is reduced by 11.2% over the
previous year. Overall energy consumption is reduced
by7.2%.

(d) Total energy consumption and energy consumption

per unit of production as per Form A of the Annexure
to the Rules in respect of industries specified in the
Schedule thereto
Not Applicable.
(B) Technology Absorption

Research & Development
1. Specific areas in which Research & Development is

carried out:
During the year under review, the focus of Automotive

Division continued on developing new products and
technologies to meet the ever growing customer
needs and regulatory requirements of emission
and safety.
The Mahindra Technical Academy (MTA) at Chennai,
Mahindra Research Valley (MRV) will train and
coach the new graduate engineers in various system
domains to deliver robust designs. At MRV, the test
tracks for validation of tractors, the advanced NVH
labs and the primary safety assessment labs are
operational. All the new technology and product
programs are already operating from MRV.

A couple of Product Development programs for
the Automotive Division, have been started at the
Mahindra North American Technical Center at Detroit
in USA.

Sustainable mobility solutions was the key focus
area. Some of the key thrust areas in this direction
were weight reduction by using alternate materials,
designing modularity to take care of variants, Value
Analysis Value Engineering (VAVE) approach
for meeting cost pressures. Development and
adaptation of safety technologies and technologies
for achieving emission targets were also the key
focus areas.
Farm Equipment Sector focussed on improving tractor
and engine technologies, while meeting emission
norms and delivering enhanced value for the
farmer. The new product development continued to
focus on developing new platforms, in line with
the upcoming requirements of the next generation
farmers. The value engineering also continued in
the right earnest to make the Companys products
competitive.

2. Benefits derived as a result of the above R&D efforts:

Some significant achievements in the Automotive
Division include launch of variants like new BMT
Plus, Bolero Pik-up Single Cab Refresh, Verito Vibe
and Xylo D2 Maxx with 9seater with side facing
rear seats.
New BMT Plus had a longer cargo for more loading
capacity. Verito Vibe is a compact variant of the
Verito. It has a restyled rear and retains the original
29
driveability of the Verito. Xylo D2 Maxx is a category

creating product. Over the year, 10variants were
introduced in Domestic market whereas 24variants
were launched in Europe, Chile, South Africa and Italy.

In the Farm Division, in the domestic market, the
Company has successfully launched the Arjun Inline
tractor, thus increasing volumes in 50plus HP
segment. The domestic common rail system and
Customer Value Enhancement features were also
successfully piloted on the Arjun range of tractors
and customers feedback has been encouraging.
The Company successfully productionised 27new
variants for the domestic market and 17new variants
for the export markets on current Bhoomiputra and
Sarpanch platforms.
In the international space, the Company successfully
introduced tractors meeting US emission norms,
effective January, 2013 in the segments of both <50
HP and the 50 HP 74 HP categories. The integrated
cabin tractor, was extended to 75 HP segment
Model mPower 75. Compact tractor with integrated
cabin, was also showcased in the US market and the
feedback was good.

In the case of Powerol business, improved fuel
efficiency solution in the telecom space has been
introduced. The launch of AC variable speed DG
sets and the 82.5KVA DG sets are newly introduced
in the retail space. For niche applications, in the
telecom market segment, the Company has
introduced ultra-super silent 25KVA DG sets.
During the year, the Automotive and Farm Divisions
filed 65new patents, while 4patents were
granted.

3. Future plan of action:
Your Company shall continue its efforts on developing

new products and technologies to meet the ever
growing customer needs, regulatory requirements
and competitive pressures.
Sustainable mobility solutions are a key focus area and
your Company will continue to aggressively pursue
technology development in these areas. Some of the
key thrust areas in this direction are developing efficient
aggregates with less frictional losses. To develop
First Time Right Products and Every Time
Right Products were the key thrust areas. Front
loading of the lessons learnt in past programs and
early supplier involvement in the development
phase were the actions taken. This approach
will make the design and development robust
and reliable.
30

Farm Equipment Design remains committed to
offering Farm Tech prosperity to the customers by
increasing the productivity and efficiency of the
Companys farm machines.

4. Expenditure on R&D:

The Company spent Rs. 1,300.94 crores (including
Rs. 660.67 crores on Capital Expenditure) for
Research & Development work during the
year, which was approximately 2.97% of the
total turnover.

Technology absorption, adaptation and innovation:
1. Efforts, in brief, made towards technology absorption,

adaptation and innovation

During the year under review, the focus of Automotive
Division continued on technology upgradation and
capability development in the core areas of Power
train, Safety, weight reduction, alternate material
and developing capabilities for increasing reliability in
Automotive Electronics.

Your Company has continued its endeavour to
develop and absorb advanced technologies for its
product range to meet the requirements of a globally
competitive market. Special focus and efforts have
resulted in electronic engine on Tractors which
provides optimum fuel consumption with enhanced
comfort for the farmers. The Company continues its
experimental research on alternate fuel technologies
like Bio Fuel, CNG, Hydrogen and other fuel
cells. Many programs are being done jointly with
industry and academia to keep these technologies
ready for commercial deployment, should the
opportunities arise.
2.
Benefits derived as a result of the above efforts:
Special focus and efforts have resulted in

electronic engine on Tractors which provides
much higher fuel consumption with enhanced
NVH and comfort for the farmers.
Emphasis on use of new materials to reduce

weight of aggregates and parts.

Develop new technologies and keep them
ready for deployment on products in the
field of:

Advanced Electronics

Alternate fuels

High performance lubricants
3. Imported Technology for the last 5 years

Sr. Technology Imported
No.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
Start Stop Micro Hybrid

New Generation Engine Management System
CNG Engines for Pickups/3 Wheelers
Electronic Programs for Safety, Stability & Steering Control
CAN Based Networking
New Airbag Program
Advanced Materials Technologies
Development of components using alternate materials and
advanced manufacturing processes
Engine upgrades and Emission improvement technologies
New transmissions for compact vehicles and Utility vehicles
Technology for NVH management
Electrical and electronic technologies for safety, infotainment and
convenience feature addition
Alternate fuel technologies
New suspension system for improved comfort
Development of digital service interface
Agri Implements Technology transfer
Electric Vehicle Technology
Advanced Engine Technologies
Advanced Propulsion Technologies
Duel Fuel Technology
Technology for NVH Improvement
Hybrid Vehicle Technology
CNG Injection Technology
Hydrogen Fuel Technology
Duel Clutch Transmission Technology
Advanced Engine Exhaust After Treatment Technology
Vehicle Comfort & Handling Technology
Aero aqoustics development
Electrical and electronics architecture validation technology
Electrical and electronic technologies for infotainment validation
New 6 Speed Transmission technology
Year of
Import
Status
2009
2009
2009
2009
2009
2009
2009
2010
Technology
Technology
Technology
Technology
Technology
Technology
Technology
Technology
Absorbed
Absorbed
Absorbed
Absorbed
Absorbed
Absorbed
Absorbed
Absorbed
2010
2010
2010
2010
Technology
Technology
Technology
Technology
Absorbed
Absorbed
Absorbed
Absorbed
2010
2010
2010
2010
2011
2011
2011
2012
2012
2012
2013
2013
2013
2013
2013
2014
2014
2014
2014
Technology Absorbed
Technology Absorbed
Technology Absorbed
In the process of Absorption
Technology Absorbed
Technology Absorbed
Technology Absorbed
All imported technologies In the process of Absorption would be absorbed as per the respective Technology Absorption
Schedule.
(C) Foreign Exchange Earnings and Outgo

The Company continues to strive to improve its export earnings. Further details in respect of exports are set out elsewhere in
the Annual Report.

The information on foreign exchange earnings and outgo is furnished in the Notes on Accounts.
For and on behalf of the Board
ANAND G. MAHINDRA
31
Particulars of loans/advances and investment in its own shares by listed companies, their subsidiaries,
associates, etc., required to be disclosed in the Annual Accounts of the Company pursuant to Clause 32
of the Listing Agreement.
Loans and advances in nature of loans to subsidiaries:

(Rs. in crores)
Balances as on
31st March, 2014
Maximum outstanding
during the year
200.00
Mahindra Gujarat Tractor Limited
1.00
1.00
Mahindra Shubhlabh Services Limited
0.68
7.26
108.69
108.69
80.40
110.72
235.50
340.00
Mahindra Heavy Engines Private Limited
18.00
18.00
Mahindra Retail Private Limited
15.00
40.00
Mahindra Gears International Limited
45.32
57.81
564.80
Name of the Company

Mahindra & Mahindra Financial Services Limited
Bristlecone Limited
Mahindra Overseas Investment Company (Mauritius) Limited
Mahindra Two Wheelers Limited
Ssangyong Motor Company
Except as indicated above, the Company has not made any loans and advances in the nature of loans to associates or loans and
advances in the nature of loans where there is no repayment schedule or repayment beyond seven years or no interest or interest
below section 372A of the Companies Act, 1956.
32
Management
Discussion AND
Analysis
Mahindra & Mahindra Limited (M&M) or (Mahindra) is
3.9% over the previous year. This growth was primarily driven
the flagship brand of the Mahindra Group which consists of
by China, USA and UK, which collectively account for 47%
140 companies with diverse businesses across the globe and
of the global automotive market. Source: OICA (Organisation
aggregate revenues of US $ 16.5 billion. The Financial Year
Internationale des Constructeurs dAutomobiles).
2013-14 was a challenging one with several shocks in the

global and domestic environment. Your Company, however,
China retained the crown of being the worlds largest
fortified by its Rise philosophy of accepting no limits, thinking
automotive market for the 5th consecutive year with total
innovatively and driving positive change in the lives of others,
sales of 21.9 million vehicles, a growth of 14%. The US market
successfully took on the challenge of performing in a very
which had hit a low in 2008, has been on a slow recovery
volatile environment.
path and posted a growth of 7% in CY 2013. However, the
The Automotive and Farm Equipment Sectors of M&M

worked together with distinct and strong customer focus
China-US market size gap widened to 6.1 million vehicles from

4.5 million vehicles in CY 2012.
at the front end and structured synergy at the back end.
European auto sales continue to slide, with key markets of
In the Financial Year 2013-14, your Company sold 268,487
Germany at 4%, France at 6% and Italy at 8%. However,
tractors (a growth of 19.4% in comparison to the previous
the UK market posted 11% growth on the back of stronger
year) and 499,015 vehicles (a degrowth of 9.5% over the
consumer confidence. The European market as a whole has
previous year).
The Automotive and Farm Equipment Sectors, along with
their subsidiary companies and joint ventures, achieved global
sales of 957,797 vehicles and tractors (657,145 vehicles and
300,652 tractors).
shown some signs of recovery in H2 CY2013.

The automotive market in Brazil was also down by 1%
after posting growth for seven consecutive years, while the
Russian automotive market posted a 6% degrowth.
Industry Structure, Overview and Trends
Indian Automotive Industry
The Indian automotive industry comprises of a number of
The Financial Year 2013-14 was an extremely challenging
Indian-origin and multinational players with varying degrees
year for the Indian auto industry. The year ended with
of presence in different segments. Today, nine of the top ten
a meagre growth of 3.5%. However, industry volumes
global automotive manufacturers have a presence in India
(excluding two wheelers) de-grew by 9.5% over the
which clearly points to its importance as a strategic market.
previous year. This is the worst ever degrowth since the year
Similarly, the domestic tractor market also has a mix of Indian
1975-76. Every segment of the auto industry, except Pik-UPs
origin and international manufacturers and is segmented by
(LCV 2 to 3.5T GVW) and two wheelers, posted a degrowth
horsepower.
during the Financial Year 2013-14. This dismal performance
Global Automotive Industry
was due to the cascading effect of low economic growth,

weak consumer sentiment over uncertainty about the future,
In the calendar year (CY) 2013, global automotive sales
increase in cost of vehicle ownership because of high vehicle
stood at a record 85.4 million vehicles, which was a growth of
financing rates and high fuel prices.

35
The table below shows the size of various segments of the Indian auto industry and their growth rates, spanning Financial Year
2011-12 to Financial Year 2013-14.
Industry
Segment
Industry Volume
YoY Growth
FY12
FY13
FY14
FY13
FY14
Passenger Cars
2,031,306
1,874,055
1,786,899
7.7%
4.7%
Utility Vehicles
363,772
553,662
525,942
52.2%
5.0%
MPV (Vans)
234,761
237,298
190,844
1.1%
19.6%
2,629,839
2,665,015
2,503,685
1.3%
6.1%
349,216
268,689
200,627
23.1%
25.3%
49,882
46,913
38,709
6.0%
17.5%
MHCV Goods
299,334
221,776
161,918
25.9%
27.0%
460,283
524,522
432,111
14.0%
17.6%
48,868
47,827
42,799
2.1%
10.5%
LCV Goods < 2T GVW
251,030
247,426
166,974
1.4%
32.5%
LCV Goods 23.5T GVW
110,117
190,442
192,911
72.9%
1.3%
LCV Goods > 3.5T GVW
50,268
38,827
29,427
22.8%
24.2%
Total CV
809,499
793,211
632,738
2.0%
20.2%
3 Wheelers
513,281
538,290
479,634
4.9%
10.9%
3W Passenger
406,260
441,124
384,923
8.6%
12.7%
3W Goods
107,021
97,166
94,711
9.2%
2.5%
2 Wheelers
13,409,150
13,797,185
14,805,481
2.9%
7.3%
Motorcycles
10,073,303
10,085,000
10,479,817
0.1%
3.9%
Scooter
2,558,981
2,923,424
3,602,744
14.2%
23.2%
Mopeds
776,866
788,761
722,920
1.5%
8.3%
17,361,769
17,793,701
18,421,538
2.5%
3.5%
3,952,619
3,996,516
3,616,057
1.1%
9.5%
Passenger Vehicles
MHCV
MHCV Passenger
LCV
LCV Passenger
Total Industry
Industry (Exc. 2W)
In the Financial Year 2012-13, the Utility Vehicle (UV) segment

posted record growth on the back of new launches. The year
also witnessed the entry of MNCs into the UV segment and
a wide price gap between petrol and diesel fuels. In the
36
Financial Year 2013-14, the growth tapered on account of high

base effect, increase in excise duty and narrowing of the gap
between petrol and diesel fuels. However, the ratio of UVs to
Passenger vehicles remained at 21%.
The commercial vehicle industry was worst affected because

of the slowdown in industrial activity including manufacturing
and mining. Slowdown in infrastructure development also
adversely impacted the commercial vehicle industry. The
Medium and Heavy Commercial Vehicles (MHCV) segment
posted its lowest volume since Financial Year 2010. The only
positive story was in the Pik-Up segment (LCV 2 to 3.5T GVW),
where volumes were driven by good growth in the agri sector
and new product launches.
Indian Tractor Industry

In Financial Year 2014, the Indian tractor market (the worlds
largest by volume), grew by 20.2% to reach 633,656 units,
crossing the 600,000 mark for the first time. A good monsoon
in Financial Year 2014 boosted the Indian agriculture sector
which is expected to grow by 4.6% as compared to 1.4% last
year. The Kharif and Rabi sowing has been higher and as per
the third advance estimates, the food grain production is
expected to be at an all time high.
All states registered growth, with the exception of Tamil Nadu
where the industry is yet to pick up after three successive
crop failures. The central region showed good growth with
Chhattisgarh growing over 50%, the highest among all states.

The growth rate in Madhya Pradesh was 24%. In the western
region, growth was led by Maharashtra which saw a resurgence
of demand and grew more than 47%, while in the South,
Andhra Pradesh and Karnataka saw a revival in demand after
a drop last year. Amongst the Northern states, Uttar Pradesh
retained its No.1 position registering the most tractor sales
with over 98,000 units sold, a growth of 13% over last year.
The table below summarises the growth across various HP
segments of the tractor industry.
Segment
Industry
FY14
FY13
Growth PY
Total
633,656
527,384
20.2%
<20
22,252
18,551
20.0%
2030
48,562
48,462
0.2%
3040
223,141
191,923
16.3%
4050
308,482
239,894
28.6%
31,219
28,554
9.3%
>50
37
Your Companys performance

Automotive Sector
During the year under review, your Companys performance was adversely impacted by the severe slowdown in the Indian auto
industry. The Automotive Sector, including the Truck and Bus Division, achieved overall volumes of 477,517 vehicles in the domestic
market, a degrowth of 10.1% over the previous year.
For the year under review, your Company is the 3rdlargest Passenger Vehicle company and by volume, the 2ndlargest Commercial
Vehicle company in India, with its share of the total Indian Auto Industry standing at 13.2%.
The table below summarises your Companys performance across all industry segments.
Industry Segment
M&M AS
Industry
M&M Mkt. Share
FY14
Growth (%)
FY14
Growth (%)
FY14 (%)
FY13 (%)
219,421
16.9
525,942
5.0
41.7
47.7
9,734
36.6
346,524
31.1
2.8
5.8
MPV Total
25,189
19.9
190,844
19.6
13.2
13.2
LCV < 2T
29,223
26.8
166,974
32.5
17.5
16.1
123,175
19.7
192,911
1.3
63.9
54.0
62,614
4.4
479,634
10.9
13.1
12.2
AD (Dom.) Total
469,356
9.6
1,902,829
6.3
24.7
25.5
LCV > 3.5 T Total
5,876
34.2
72,226
16.7
8.1
10.3
MHCV (Goods)
2,285
23.2
88,123
24.2
2.6
2.6
477,517
10.1
2,063,178
7.7
23.1
23.8
UV Total
Cars (Verito)
2T > LCV <3.5 T

3W Total
AS (Dom.) Total
Your Company maintained its leadership position in the domestic UV market with a 41.7% share. The Scorpio continues to strengthen
its iconic status with sales crossing 50,000 units for the third consecutive year. The Scorpio also posted its highest ever sales since
launch. The Bolero continued its stellar performance with sales crossing 100,000 units for the third successive year. The Bolero
retained the title of Indias largest selling UV for the 8th consecutive year. It is also the 5th highest selling passenger vehicle in India
and the only UV to feature on the list of Top 10 selling passenger vehicles in India. The XUV500 continues to be the customers
choice, with average 3,300 units sold per month in Q4 Financial Year 2014.
The graphs below show the movement of the Companys market share in the UV and Pik-UP segments in the four quarters of
Financial Year 2014. Market share in the UV segment is on an upswing while the Company has consistently improved its market
share in the Pik-UP segment.
50%
48%
UV Mkt. Share
70%
46.0
46%
72.2
65.8
65%
43.2
44%
42%
38.2
58.0
60%
55%
39.6
40%
58.8
50.4
50%
38%
45%
36%
40%
34%
35%
32%
30%
30%
Q4 FY13
38
Pik-UP Mkt. Share
75%
47.8
Q1 FY14
Q2 FY14
Q3 FY14
Q4 FY14
Q4 FY13
Q1 FY14
Q2 FY14
Q3 FY14
Q4 FY14
Product Launches and Customer Centricity

At Mahindra, customers are at the core of its business
processes and new product development, with our products
and initiatives focused on catering to the diverse needs of our
customers.
In the Financial Year 2013-14, the Company launched four new
product variants the Bolero Maxi Truck Plus (BMT
Plus), the New Bolero PU Flat Bed, the XUV500 W4 and
the Verito Vibe which is a compact sub 4 m variant of the
Verito car.
The Bolero Maxi Truck Plus has been designed to cater to

the challenges of transportation in urban areas. The product
easily manoeuvres through heavy traffic, narrow city lanes
and numerous flyovers, while still ensuring best-in-class fuel
economy. This is enhanced by a higher load carrying capacity
and improved safety measures for customers.
Since its launch in 2011, the XUV500 has carved a special niche
for itself in the minds of Indian consumers. The new entry
level W4 variant makes the XUV500 proposition accessible to
a larger base of customers who aspire to be proud owners of
this award winning vehicle inspired by the Cheetah. With no
change in powertrain, the W4 variant offers a high level of
technology and aims to attract sedan and compact SUV buyers
who wish to upgrade.
Over the past few years, the Company has worked tirelessly
to improve customer satisfaction at the product as well as the
dealership level. The results of these efforts can be seen from
the score and rank received by the Mahindra brand in the
JD Power CSI and SSI surveys for 2013. Mahindra was ranked
4th (along with Toyota) in the JD Power CSI study, while in
the JD Power SSI survey, Mahindra was ranked 2nd along with
Toyota and Hyundai.
In line with its philosophy of customer centricity, your
Company has expanded its network, reaching out to 477
districts in India out of a total of 657. Vehicles from the
Mahindra stable can now be serviced even in the remotest
areas of the country like Kargil, Port Blair and Reckong Peo in
Himachal Pradesh.
The new Bolero Pick-Up Flat Bed with more modern, macho
and stylish looks and superior fuel efficiency is also a step
forward in this direction as it delivers greater earning potential
for customers while retaining the basic tough and rugged DNA
associated with Mahindra vehicles.
39
Automotive Sector Overseas Operations

The Automotive Sector of your Company exported a total of
29,659 vehicles during the Financial Year 2013-14, posting a
degrowth of 8.6% over the previous year. The Scorpio continues
to take the largest share of the exported product pie, followed
by the Maxximo. The XUV500 also performed well in South
Africa and Chile. In 2013-14, Sri Lanka, Chile, South Africa and
Nepal continued to be the largest overseas markets. While the
degrowth for the year is primarily driven by the change of
duty structure in Sri Lanka, there was good growth in Nepal,
Bangladesh, Peru and Tunisia. The Company continues to focus
on building the brand and channel in focused markets.
The acquisition of a majority stake in Ssangyong Motor

Company in 2011 was a significant step towards realising
your Companys global ambitions. This acquisition was aimed
at expanding our range of SUVs and also delivering synergy
benefits in the areas of product development, sourcing and
expanding global reach. Today, work is underway for joint
development of a new vehicle platform and a new engine
family with both diesel and gasoline fuel options.
Mahindra Reva, which is focused on developing electric
powertrains, has already launched the Mahindra e2o in
India, Nepal and Bhutan and work is currently underway for
developing variants for other export markets as well. The
Company also displayed the Mahindra Halo at the Delhi Auto
Show in February 2014.
Mahindra displayed its most diverse portfolio across product
categories at the Auto Expo, showcasing Accessible Technology
ranging from SUVs and future ready electric mobility
solutions to its commercial vehicle portfolio and exciting
new motorcycles from Mahindra Two Wheelers. The product
pipeline included the range from Mahindra and SsangYong,
electric mobility solutions from Mahindra Reva and a diverse
range of commercial vehicles and two wheelers.
Gearing Up for Tomorrow

Over the last four years, your Company has taken many steps on
its journey towards becoming a globally recognised automotive
manufacturer. Some of the key initiatives were (i)setting up
the Mahindra Vehicle Manufacturers Ltd. (MVML) plant in
Chakan, near Pune in Maharashtra (ii)establishing a modern
product development facility, the Mahindra Research Valley
(MRV) near Chennai (iii)acquisition of Ssangyong Motor
Company in South Korea and (iv) acquisition of a majority
stake in Mahindra Reva Electric Vehicles Private Limited
(Mahindra Reva).
MVML (a 100% subsidiary of your Company) which has its plant
at Chakan is the largest manufacturing facility for your Company,
producing over 100,000 vehicles in the Financial Year 2013-14.
The plant manufactures a wide range of products, including
the XUV500, the Rexton by Mahindra, the Genio Pick Up, the
Maxximo range of vehicles and trucks made by Mahindras
Truck & Bus Division and the Pik-UP range of products for the
export market.
The MRV, which was inaugurated in April 2012, houses all new
technology and product programmes of your Company and is
home to over 2,500 engineers.
40
Farm Equipment Sector

With its quest to deliver Farm Tech Prosperity to the Indian
farmer, the Financial Year 2013-14 saw numerous initiatives by
the Farm Equipment Sector in the area of farm mechanisation,
knowledge dissemination and interventions across the
agriculture value chain.
Tractor and Farm Mechanisation Business

The Financial Year 2013-14 saw 31 years of M&M leadership in
the domestic tractor market, with a market share of 40.6%. In
addition to this, the Swaraj and Mahindra brands enjoyed the
distinction of being No.1 and No.2 in Customer Satisfaction
(TNS survey 2013).
In this period, the Company sold 268,487 tractors, (domestic

plus export), under the Mahindra and Swaraj brands, as against
224,844 tractors sold in the previous year, registering a growth
of 19.4%. This growth was due to sales in almost all states,
with Andhra Pradesh, Karnataka and Maharashtra leading
the way. A key contributor to this growth was the launch of
multiple tractor variants to meet customer requirements across
a variety of applications.
The year was also made memorable by some landmark events.
The Swaraj Division rolled out the 1 millionth tractor from its
Plant and brand Mahindra Tractors received the award for
Asias Most Promising Brands.
Global Footprint
The Sector continued to strengthen its global footprint
with a focus on the key markets of USA and China, amongst
other regions. Total tractor volumes outside India stood
at 40,612 tractors, with exports from India contributing
10,148 tractors.
USA
Mahindra USA celebrated 20 years of incorporation in the
USA. The company once again crossed the 10,000 annual
volume mark, and had its highest ever billings and retails. It
also achieved an all-time high market share of 8% in the 0-80
HP segment in the US market. Mahindra USA continues to
expand its reach by making significant efforts to strengthen
the Mahindra brand in this market, especially enhancing its
presence in the digital space.
China
China is the second largest tractor market in the world, but
the industry is in the midst of turbulent times. Volumes from
the Mahindra Yueda (Yancheng) Tractor Company Limited
(MYYTCL) saw a marginal decline to 19,042 units in the
domestic market, as compared to 19,622 units sold in the same
period last year. At the same time, exports from China saw a
growth of 5.4% to 2,579 units, as compared to 2,447 units the
previous year.
Towards Farm Tech Prosperity

Agriculture in India faces three key challenges. These are
low productivity as compared to developed countries,
increasing labour scarcity and high labour costs and small
farm sizes.
To address these challenges, Mahindra offers a whole range
of mechanisation solutions, tractors for small and large farms,
micro-irrigation units, crop care products, seeds and modern
agronomy know-how to farmers.
Farm Mechanisation Mahindra AppliTrac

Farm mechanisation is a key enabler to address the problem
of farm productivity and labour shortage. In this direction,
Mahindra AppliTrac (AppliTrac) offers efficient and
affordable mechanisation solutions across the spectrum of
farming operations. AppliTrac continued to grow the market
for mechanisation in the country, playing its part in boosting
agricultural productivity. In the Financial Year 2013-14,
AppliTrac growth was led by rotary tillers and harvesters.
Beyond this, AppliTrac has developed and offers a range of
farm machinery including rice transplanters, sprayers, mulchers
and balers to fulfil the needs of farm mechanisation.
Mahindra Samriddhi
The focus of Mahindra Samriddhi is to offer knowledge and
knowhow on modern farming technologies. Today we have
more than 160 Mahindra Samriddhi centres which were
accessed by over 90,000 farmers in the Financial Year 2013-14.
The Mahindra Samriddhi India Agri Awards continues to be the
premier event in the field of Indian agriculture. It is graced by
leading luminaries from the field of agriculture and honours
the torch bearers of farm prosperity across the nation.
Rest of the World

Continuing last years trend, the growth story for Rest of the
World operations was in Africa, with Algeria emerging as the
biggest market for Mahindra Tractors. However, the SAARC
region remained a challenge, with declining industry growth in
Bangladesh, Sri Lanka and Nepal adversely impacting volumes.
41
Seeds and Crop Care
Mahindra Powerol
Use of improved seeds, especially hybrids, is one of the key

drivers of higher quality produce and superior yield. With a
portfolio of quality seeds spanning field crops, cash crops and
vegetables, this business reaches out to farmers across India.
The business has doubled its revenue this year and is poised
for good growth in coming years.
For Mahindra Powerol, the Financial Year 2013-14 was a

challenging one. The companys revenue was down by around
17% with the industry de-growing in the telecom and retail
DG segment. However, Mahindra Powerol improved its market
share in both segments with its telecom market share reaching
64% as compared to 54% last year. In the retail DG segment,
the company enjoys a market share of 29.5%, the second
largest in this space. It also achieved the No.1 position in the
Customer Satisfaction Index (CSI) in the retail segment.
During the growth phase, crops are under the constant threat
of virus, disease and nutrient deficiency. The Companys Crop
Care business offers a range of herbicides, pesticides and
fungicides, mitigating the risk of crop loss. The business has
grown ~25% over the previous period, aided by the launch of
eight new products.
Mahindra branded seeds and crop care products are available
at Mahindra Samriddhi centres as well as through independent
channel partners.
In its pursuit of becoming future ready, the business is looking

for emerging segments and has also entered into Energy
Management Solutions, having already established over
600sites.
Micro-irrigation business
Micro-irrigation offers tremendous benefits to the farmer,
including water savings of more than 25%, reduced expenditure
on labour and fertiliser and higher productivity.
The Company had forayed into micro-irrigation in 2011,
through the acquisition of a stake in EPC Industri Limited,
one of Indias leading micro-irrigation companies. Its business
for the Financial Year 2013-14 grew 8% while the industry
degrew by around 8% to 10%.
Opportunities and Threats
Construction Equipment Mahindra EarthMaster
Automotive Sector
With a slowdown in infrastructure spending and the ban on

mining in the country, the backhoe loader market declined
by 18% as compared to the previous year. However, the
Mahindra EarthMaster maintained its volume in this declining
industry, the only player to do so. In the process, the Mahindra
EarthMaster gained market share and jumped three ranks to
reach the 5th position.
In spite of the current slowdown, the mid to long term growth

forecast for the Indian economy remains healthy. As a result
of an increase in income levels and lifestyle aspirations, the
potential size of the Indian vehicle market (Passenger Vehicles
+ Commercial Vehicles) by the Financial Year 2017-18 is likely to
be as large as ~4.5 million vehicles (current size 3.13 million),
with a growth rate of 10% per year (Source: SIAM). Also, given
the importance of the automobile industry to the economy,
its potential for employment and its backward and forward
linkages with several sectors, the Government is keen to
support its development.
On the other hand, there is a continuous need to globally reduce
emissions from automobiles, leading to the need for ongoing
investment in technology and alternate energy powertrains.
Growing environmental consciousness among consumers,
government regulations to manage traffic congestion, as
well as improvement in public transport infrastructure are
42
trends that will have a significant impact on the future of the

automotive industry.
For Commercial Vehicles (CVs), the growth in agriculture
and industrial production, spend on infrastructure projects,
the spread of organised retail and the growing prevalence of
the hub-and-spoke model for transportation of goods will lead
to a significant expansion of the overall market size. In the
mid to long term, stricter implementation of norms related to
road worthiness will also lead to considerable expansion in the
market for CVs.

Continued Government support for agriculture and rural
development, greater adoption of improved agricultural
practices and broad basing of the rural economy are positive
developments that will drive sustainable agriculture and
rural growth.
Within India there are several regions with low tractor
penetration, especially among the large base of small and
marginal farmers. With increasing labour cost and scarcity,
greater adoption of various forms of mechanization is the way
forward. In this scenario, the market for tractors and other
farm equipment is expected to grow in the long term. Going
forward, the competitive intensity is expected to increase,
leading to frequent product launches and product offerings
at high value points, in turn raising customer expectations of
performance, quality and technology. New launches and the
need for improved performance with modern technology will
put pressure on costs.
The rising demand for power and infrastructure development
will create opportunities in the power generation and
infrastructure equipment space. This is an opportunity for
the Company to grow its offerings in power solutions and
construction equipment.
Risks and Concerns Automotive and Farm

Equipment Sectors
The Companys business is exposed to many internal and
external risks and it has consequently put in place robust systems
and processes, along with appropriate review mechanisms to
actively monitor, manage and mitigate these risks.
Commodity Prices
Globally, commodity prices declined in the first half of the
Financial Year 2013-14, but sharp rupee depreciation restricted
the price decline in India, resulting in moderate commodity

inflation. Your Company successfully mitigated the material
cost impact through cost reduction and value engineering. In
the second half of the Financial Year 2013-14, your Company
was successful in containing commodity inflation with minimum
impact, supported by rupee stabilization.
In the first half of Financial Year 2014-15, commodity prices
are seen to be largely stable with favourable currency and
weak industrial growth both globally and in India. Prices are
expected to firm up in the second half with expectations of
the economy improving both globally and in India. There are
also cost pressures due to the increase in power and fuel costs
and your Company is focusing on minimizing the impact of this
through constant cost re-engineering.
Capacity
The Company has built adequate manufacturing capacity for
the immediate future and is planning to invest in additional
capacity in preparation for the mid to long term.
On the supplier end, the Company is working closely with
its key suppliers to minimise any supply constraints through
capacity planning and longer term contracts. At the same
time, opportunities for global sourcing are also being actively
explored.
Competitive Intensity
Keeping in mind the high growth potential of the Indian
automotive market, all Original Equipment Manufacturers
(OEMs) are actively investing in new product development
and product technology upgrades in India. Multinational
OEMs are increasingly becoming India focused and developing
India centric products. Further, with increased local sourcing
and development taking place in India, cost structures of
multinational corporations are becoming more competitive.
Moreover, in the past, most MNC OEMs entering India were
focused on the car market. Now they have an active presence
in the UV and CV segments as well, leading to intense
competition in this space as well.
With improvement in infrastructure and strengthening of the
hub and spoke transportation model, the need for commercial
vehicles across product categories is expected to multiply. The
medium and heavy commercial vehicle segment features two
dominant domestic players and in the recent past it has also
witnessed the entry of MNCs. The need for efficient logistics in
the feeder and distributor routes has led to growth in the small
43
commercial vehicle category. Your Company has a presence

across the commercial vehicle segment and continues to invest
in new product development as well as technology upgrades
and will continue its focus on delivering customer centric
products and network expansion to reach out to customers at
their doorstep.
Tax and Excise Duty Regulations

In India, there is a large differential between taxes levied on
small cars and larger vehicles. With the resulting lower price
tag for small cars, many customers may opt to postpone
large car purchases or buy a small car which could impact the
growth of UVs and the large car segment. Certain products of
key competitors have the benefit of lower excise duty. Your
Company is working on plans to meet the changing regulatory
environment.
Diesel Petrol price parity

Traditionally, there has been a wide gap between petrol and
diesel prices in India, leading to a preference for diesel passenger
vehicles. The Government of India has been working to reduce
this gap through the reduction in subsidies on diesel fuel and
in January 2013, the Government of India announced a policy
for partial deregulation of diesel prices. As a result of this, the
diesel petrol price gap has narrowed from Rs.32 in May 2012
to Rs.17.68 in March 2014. This will impact the cost of ownership
and may have an impact on the demand for your Companys
products, as almost all its products are diesel powered.
Environment and Alternate fuels

Stringent regulatory norms are being introduced to safeguard
the environment, especially in the area of emissions. Your
Company has invested in appropriate technologies to meet
these regulations. At present, there is demand for vehicles
powered by CNG and LPG. Your Company is well prepared
to meet this demand and has proactively invested in the
development of vehicles that run on CNG, Biodiesel and
Hydrogen. The Company also offers Micro hybrid technology
across its product range of UVs and Pik-UPs. Substantial
progress has also been made in the development of a hybrid
powertrain. The XUV500 Hybrid was also displayed at the Auto
Expo 2014 in New Delhi.
The launch of the battery operated electric vehicle, the
Mahindra e2o, in March 2013 was an important milestone in
the direction of sustainable mobility. The vehicle was launched
by Mahindra Reva Electric Vehicles Private Limited, a subsidiary
44
of your Company. The company continues its effort to develop

the Electric Vehicle (EV) market and upgrade EV technology
capabilities.
Financial Market Conditions

The financial markets remained volatile for most part of the
year. The tapering of Quantitative Easing initiated by the US
Fed in the summer of 2013 created widespread rebalancing
of emerging market assets by fund managers, which affected
Indian financial markets too. The RBI stepped in to contain
the fallout of the taper, including steps to curtail excessive
gold import, opening of special forex swap windows for oil
remittances and FCNR deposits. Exports gained momentum
on the back of rupee depreciation during the year. Thus, the
full year CAD was contained below 2% of GDP. Capital flows
during the year slowed to $49 billion versus $89 billion in
Financial Year 2013. Both portfolio flows and trade credits
during the year showed lower prints than the previous year,
partly balanced by resilient FDI/ECB flows. The BoP ended
with a surplus of $15.50 billion in Financial Year 2014. The
rupee had a roller coaster ride through the year, rising from
Rs. 54 levels at the close of Financial Year 2013, showing
signs of weakness since May, and reaching a top of Rs. 68 in
August, finally settling just below Rs.60 as at the close of
the year.
The RBI remained focussed on inflation and the year saw a
net increase in repo rates by 50bps, mostly in the latter part
of Financial Year 2014. After the last increase on 28thJanuary
2014, the RBI has maintained a pause in the last two monetary
policy reviews, with suggestions of rate cuts in line with lower
inflation prints. CRR and SLR were left untouched but the RBI
did exercise tight monitoring over liquidity in the system, yet
ensuring availability, by using LAF. Consequently, the yields
on 10year GoI bonds increased by almost 80 bps from the
previous years close and the interest rates remained elevated
for borrowers and consumers for most part of the year.
Attesting to the fact of the FIIs weakening interest in EM debt,
the Indian debt markets saw a net outflow, as they pulled out
$4.6 billion during the year.
The Sensex posted a strong growth during the year, posting
a 19% growth on YoY basis, the most in four years. Most
of the gains came at the end of the year on expectations
of an election outcome favouring a stable government. In
the month of March alone, the FIIs ploughed $3.2 billion
into equities.
With the formation of a new government at the centre,

expectations on new thrust to investment activities,
infrastructure and concerted policy actions are running high.
The risks arising out of fiscal deficits or CAD have moderated
and interest rates and the rupee are generally expected to be
range bound. During the Financial Year 2014, your Company
borrowed Rs.500 crore as 50year bullet unsecured NCD at
9.55% in July 2013, in challenging market conditions. With its
strong credit profile, it will face very little of interest rate or
liquidity mismatch as the funding sources remain diversified
and flexible. Your Company retained a healthy cash surplus
throughout the year in Financial Year 2014. Its foreign currency
risks stayed within tolerance levels despite volatilities seen
during the year. With the stable outlook coupled with the
policy of prudent hedging policies, the Company will be in a
position to mitigate risks to the Fx portfolio.
automotive business to some degree, run the risk of a drop

in demand in case of a significant variation in the monsoon,
both positive and negative. In addition, an untimely monsoon
and uneven spread have the potential of adversely impacting
the business.
Though the outlook is stable, your Company is in readiness to

meet any unforeseen challenges to availability of liquidity or
interest rate or foreign exchange volatilites by following a well
laid risk management framework, preservation of its credit
profile and therefore, access to institutional credit lines, both
domestic and international and retention of a certain level of
cash at all times.
The long term outlook for the automotive industry is robust,

though in the near term there are some challenges relating
to economic growth, inflation, cost of ownership, consumer
confidence and sentiment which has always been a key
determinant of automobile sales. Also, any steep increase in
commodity prices will lead to increase in vehicle prices which
could be a dampener.
In May this year, your Company was awarded a rating of

IND AAA with a Stable Outlook by India Ratings and
Research (Ind-Ra, a Fitch Group Company). The key driver
for this highest credit rating cited by the rating agency
wasthe resilience shown by the Company over multiple
business cycles in the last 19 years. The recent rating upgrade
is an acknowledgement of the strong credit profile that
the Company has maintained over the years, ensuring its
flexibility to finance all its future growth plans. The AAA
rating indicates the highest degree of safety regarding timely
servicing of financial obligations and is also a vote of confidence
reposed in your Companys management by the rating agency.
In the long term, the Indian economy is projected to grow

rapidly and demand conditions are expected to remain strong.
According to long term forecasts from SIAM (Society of Indian
Automobile Manufacturers), the Indian automobile industry
is expected to grow at an annual average rate of ~10%.
However, in the near term, the challenges as outlined above
will have a bearing on demand and OEM profitability.
New projects
In order to meet customer needs and keep a watch on
competition, your Company is investing in an aggressive
new product development programme as the success of new
product launches will have an important bearing on its future
growth and profitability.
Monsoon
A normal monsoon is important for both agriculture as well as
the rural economy. The tractor business in particular and the
Outlook Automotive & Farm Equipment

Sectors
Both the Automotive and Farm Equipment Sectors with their
updated product portfolios strive to maintain their leadership
position in the domestic market and at the same time explore
global opportunities. Simultaneously, your Company continues
its focus on achieving cost leadership through focused cost
optimisation, productivity improvements, value engineering,
improved efficiency measures like supply chain management
and exploiting synergies between its Sectors.
For the Financial Year 2014-15, SIAM has projected a growth

of 4-6% for the passenger vehicle segment, 4-7% for LCV
Goods in the less than 3.5T segment and 3-7% for the MHCV
goods segment. Similarly, in the case of tractors, the long term
outlook continues to be positive with the tractor industry
expected to continue to grow with a CAGR ranging between
7% and 10%.
Strategy
Automotive Sector
Your Company is pursuing several strategic initiatives in all
key areas of business, to maintain a healthy and sustainable
growth for its Automotive Sector. Some of the key elements of
strategy include enriching the product portfolio to strengthen
presence across various product segments, continually
45
refreshing and updating products and strengthening R&D and

technology capabilities. In addition, your Company is pursuing
expansion in overseas markets through organic and inorganic
routes. Establishing the channel and building the brand in
key focus markets remain the priorities for your Company.
With increasing concerns over global warming and the need
for sustainable mobility, your Company continues to focus
and invest in development of alternate fuel technologies and
solutions in this area.

The Farm Equipment Sectors strategy is aligned to delivering
Farm Tech Prosperity to the farmer. The core business of
tractors will deliver this through its range of existing and future
products that reduce drudgery and enhance farm productivity.
At the same time, the business will continue to expand its
global footprint and your Company will also offer a wider
range of mechanisation solutions and agri knowledge. The agri
business of the Company will continue to build presence across
various segments of the agri value chain, creating value for the
business and farmers alike. All these together will thus lead to
greater farm productivity and deliver prosperity, strengthening
the Companys leadership position.
Material Developments in Human Resources /

Industrial Relations for Automotive and Farm
Equipment Sectors
The strategic purpose of Human Resources in the Mahindra
Group continued to be the creation of a culture of sustained
business outperformance while simultaneously showing
extreme care for all stakeholders, starting with customers and
employees, and strengthening the core values of the Group. In
the long run, the metric for success would be improvements
in the total factor productivity, while addressing the business
imperatives of cash, cost, competence and confidence. The
emphasis has been on aligning all the HR levers towards
achieving these goals. At the core of all initiatives is the
unleashing of human potential through empowerment.
In this overall architecture, some key strategic initiatives that
need mention are the Mahindra Leadership University, Reflective
Conversations Workshops, employer branding, employee value
proposition, the template for creating Tomorrows Leaders and
harnessing the power of diversity (across its many dimensions
which include gender, age, nationality and culture). There
was huge focus on the Talent Management and Leadership
Development process, which included Development Centres,
46
Individual Development Planning, e-learning, up-skilling

programs and action-learning projects. This was supplemented
by a continuous dialogue with top management through
Intranet and Fireside Chats. We continued to harness the power
of IT, and the project of integrating and creating e-enabled
services covering 24 HR processes has been nearly completed
and we are able to see positive results emerging out of it.
We have created the Mahindra Leadership University (MLU)
to support the process of building the capacity and capability
of our leadership pipeline by leveraging a virtual platform.
Various leadership, innovation and technical academies have
been formed and activated under this University. The academies
are chaired by business leaders and include both senior leaders
from across Group businesses as well as external experts. The
first offerings of the MLU have already been rolled out.
Tie-ups with the Harvard Business School (HBS), Wharton
School of Management, Ross School of Management
Michigan, Centre for Creative Leadership (CCL) USA, Indian
Institutes of Management and other leading management
institutions in the country have helped us in building capability.
The 3E approach (Experience, Exposure and Education) towards
capability building has been integrated into the development
process and capability building. Experience is delivered by
providing people with meaningful roles/projects, Exposure
happens through coaching and mentoring by leaders and
Education by building mental acumen through development
programmes and classroom training.
Additionally, in an effort to build the Mahindra Group into
a Reflective Organization, Group HR conceptualized and
rolled out Reflective Conversations Skill Building Workshops
throughout the organization. The objective is to help Mahindra
Leaders develop an appreciation of how conversations with
colleagues based on self-appraisal and 360 degree feedback
can lay the ground for reflection, active listening and asking
powerful questions, subsequently leading to high performance
in teams. So far, close to 300 senior leaders of the Mahindra
Group have been covered in the US, UK, Singapore and India.
At the Automotive and Farm Equipment Sectors (AFS), we
have conceptualized our Employee Value Proposition (EVP),
CAPable people, REAL experience. For delivering our EVP, we
have launched a plethora of offerings like Emerging Leaders
Program, online career tool, MPower, Young Mahindra
for GenY, Idea Drive and many more at the workplace.
This year, our focus was on creation of a distinct employer
brand on social media platforms with emphasis on our EVP

offerings. Our efforts in transforming our workplace has been
recognized by the Great Places to Work (India) Study 2013
in which we are ranked third in the Manufacturing and
Production domain and are also ranked amongst the Top 50
workplaces in India.
Needless to say, unleashing of potential applies not only to
Officers but also to the blue collar workforce. To that extent, the
ongoing Transformational Work Culture initiatives have grown
both in depth and width of coverage. The Transformational
Work Culture Committee (TWCC) is working on a long term
strategy and approach with a view to ensure a productive
shop-floor and build competitiveness in the marketplace.
Although the overall Industrial Relations climate in the country
and the industry has been adverse, we have largely been able
to maintain cordial relations. Our philosophy of solving issues
through dialogue and building trust has helped us to a large
extent in maintaining harmony on the shop floor. This enabled
us to sign eightwage settlement agreements across different
plant locationsduring the period under review. In order to
foster togetherness at the workplace, we organized training
and engagement programs across all locations for developing
behavioural and technical skills of workmen. These training
programmes covered a wide range of topics, including Positive
Attitude, Stress Management, Creativity, Team Effectiveness,
Safety and Environment, Quality Tools, TPM, Dexterity
and Technical Training. The permanent employee strength
of Mahindra & Mahindra Limited as on 31stMarch, 2014
was 19,427.
Internal Control Systems

The Company maintains adequate internal control systems
commensurate with the nature of its business and size and
complexity of its operations. These are regularly tested for
their effectiveness by Statutory as well as Internal Auditors.
In the highly networked IT environment of the Company,
validation of IT Security receives focused attention from
IT specialists and Statutory Auditors. The Company has a
strong and independent internal audit function consisting of
professionally qualified accountants and engineers. The Chief
Internal Auditor reports directly to the Chairman of the Board.
Significant observations made by the internal audit team
and the follow up actions thereon are reported to the Audit
Committee. The Audit Committee reviews the adequacy and
effectiveness of the Companys internal control environment
and monitors the implementation of audit recommendations.
Discussion on financial performance with

respect to operational performance
Overview
The financial statements have been prepared in compliance
with the requirements of the Companies Act, 1956, and
Generally Accepted Accounting Principles (GAAP) in India.
The Groups consolidated financial statements have been
prepared in compliance with the standard AS21 on
Consolidation of Accounts and presented in a separate section.
Financial Information [Standalone]

Fixed Assets:
As at 31st March, 2014, the Fixed Assets stood at Rs.7,105.39
crores as compared to Rs.5,821.34 crores as at 31st March,
2013. During the year, the Company incurred capital
expenditure of Rs.1,704.30 crores (previous year Rs.1,435.62
crores). The major items of capital expenditure were on New
Product Development, Capacity Enhancement and Research &
Development.
Inventories:
Raw materials and

bought out components
as a % of cost of
materials consumed
Finished goods and
Stock-in-trade as a % of
sales of products
31st March,
2014
31st March,
2013
3.78%
3.85%
3.93%
3.11%
The reduction in raw material and bought out components

as a percentage of consumption is due to better materials
planning and control. However, finished goods as a percentage
of sales of products have increased during the current year due
to the slowdown being witnessed in the auto industry, mix of
finished goods and build up for upcoming seasonal demand in
the tractor division.
Trade Receivable:
Trade Receivable is Rs.2,509.84 crores as at 31st March, 2014, as
compared with Rs.2,208.35 crores as at 31st March, 2013. Also,
as a percentage of Gross revenue from sales of products and
services, trade receivable is higher at 5.90% for the year ended
31st March, 2014, as compared to 5.15% for the previous year.
The increase in the trade receivable levels during the current
year is due to growth in the volume of tractor sales.
47
Long Term & Short Term Borrowings:

Borrowings (including current maturities of long term debt and unclaimed matured deposits) have increased from Rs.3,489.29 crores
in the previous year to Rs.4,045.76 crores in the current year. The increase is primarily on account of issue of Senior Redeemable
Non-Convertible Debenture in the current year.
RESULTS OF OPERATIONS
Income:
(Rs. crores)
Particulars
FY2014
FY2013
Inc./(Dec.)
Amount
Amount
42,240.60
104.28
42,502.27
105.10
(0.62)
Sale of Services
334.44
0.83
372.34
0.92
(10.18)
Other Operating revenue
545.14
1.34
538.04
1.33
1.32
43,120.18
106.45
43,412.65
107.35
(0.67)
2,611.68
6.45
2971.49
7.35
(12.11)
40,508.50
100.00
40,441.16
100.00
0.17
717.99
1.77
549.17
1.36
30.74
Sales of Products
Gross Sales & Income from Operations

Less : Excise Duty on Sales
Net Sales & Income from Operations
Other Income
Net Sales, Income from Operations & Other Income:

In the wake of a good monsoon, the tractor business witnessed a robust growth of 19.64% but the challenging times in the
automotive industry led to deceleration in the auto business by 7.88%, leading to the net sales and income from operations of the
Company being flat as compared to the previous year.
Other income during Financial Year 2014 at Rs.717.99 is higher than Rs.549.17 crores earned in the previous year due to higher
dividend income from subsidiaries and higher interest income.
(Rs. crores)
Particulars
FY2014
FY2013
Inc./(Dec.)
Amount
% to Net Sales
& Income from
Operations
Amount
% to Net Sales
& Income from
Operations
29,432.33
72.66
30,424.52
75.23
(3.26)
2,163.72
5.34
1,866.45
4.62
15.93
Finance Costs
259.22
0.64
191.19
0.47
35.58
Depreciation and Amortisation

Expense
863.34
2.13
710.81
1.76
21.46
Other expenses
4,191.24
10.35
3,440.89
8.51
21.81
Total Expenses
36,909.85
91.12
36,633.86
90.59
0.75
Material Costs
Employee Benefits Expense
Expenditure:
The total expenditure during the year as a percentage of Net sales/Income from Operations is 91.12 % as compared to 90.59 % in
the previous year.
48
Material Cost:
Provision for taxation:
The decrease in material cost is mainly due to benign

commodity prices, better mix and continued cost reduction
initiatives undertaken by the Company.
The provision for current tax and deferred tax for the year
ended 31stMarch, 2014 as a percentage to profit before tax
is lower than the previous year, because the tax charge was
lower in the current year due to the unabsorbed tax losses
of the trucks business of Mahindra Trucks & Buses Limited
(MTBL) which became available on the merger of the trucks
business of MTBL with the Company, increased research and
development expenditure and investment allowance on plant
and machinery which became applicable in the current year.
Personnel Cost:
Personnel cost has increased by 15.93% to Rs.2,163.72 crores
from Rs.1,866.45 crores in the previous year. This is mainly
due to annual increments, strength increase and merger of
trucks business of Mahindra Trucks and Buses Limited during
the year.
Other Expenses:
Other expenses as a percentage of net sales and operating
income shows an increase over the previous year. Expenses
in absolute terms too are higher due to merger of the trucks
business of Mahindra Trucks and Buses Limited. The expense has
also increased on account of difference in exchange, freight,
marketing related expenses on incentives, advertisement and
sales promotion to support and enhance sales in a challenging
market and for brand building.
Depreciation and Amortisation:

The depreciation and amortisation for the year ended
31st March, 2014 at Rs.863.34 crores as compared to Rs. 710.81
crores in the previous year is due to merger of the trucks
business of Mahindra Trucks and Buses Limited and full year
impact of capitalisation of assets during the previous year and
the impact in the current year on account capitalisation of
assets during the year.
Finance Costs:
The interest expense for the year ended 31stMarch, 2014 is
Rs.259.22 crores as compared to Rs.191.19 crores in the
previous year. This is mainly due to new borrowing of Senior
Redeemable Non-Convertible Debenture and interest cost
on borrowings taken over on merger of trucks business of
Mahindra Trucks and Buses Limited.
Exceptional Items:
The profit from Exceptional items during the year ended
31stMarch, 2014 is Rs.52.79 crores as against Rs.90.62 crores in
the previous year. The profit in the current year is on account
of profit earned on sale of shares of Mahindra Logistics Limited
and Mahindra Two Wheelers Limited. In the previous year, it
was on account of profit earned on sale of shares of Mahindra
Holidays & Resorts India Limited.
Consolidated Financial Position of the M&M Group

As on 31stMarch, 2014, the Group comprised of the flagship
holding company, Mahindra & Mahindra Limited, 118
Subsidiaries, 7 Joint Ventures and 14 Associates.
The Gross Revenue and Other Income for the year ended
31stMarch 2014 of Consolidated Mahindra Group is Rs.78,735.72
crores as against Rs.74,360.82 crores for the previous year.The
Groups net revenue and other income grew by7.9% to
Rs.74,506.02 crores in the current year from Rs.69,082.43
crores in previous year. The profit before exceptional items and
tax for the current year is Rs.5,501.75 crores as compared to
Rs.5,127.87 crores in the previous year. The consolidated Group
Profit for the year after exceptional items and tax and after
deducting minority interest is Rs.4,666.93 crores as against
Rs.4,099.20 crores earned in the previous year.
Tech Mahindra Limited, (TML) the Companys Flagship
Company in the IT Sector, has reported a consolidated revenue
at Rs.18,831.38 crores in the current year and consolidated
PAT of Rs.3,028.81 crores. During the year, Satyam Computer
Services Limited (earlier an associate company) merged with
Tech Mahindra. On a comparable basis, the consolidated
revenue of TML grew by 31.4% and PAT grew by 54.9% as
compared to the previous year.
The Groups finance company, Mahindra & Mahindra Financial
Services Limited (MMFSL), maintained a healthy growth of
business and profits despite slowdown in the auto and tractor
industry and continuing high cost of borrowings through
control of transaction cost and high collection efficiency
levels. During the year ended 31stMarch, 2014, MMFSL
registered a disbursement of Rs.25,400 crores and maintained
its leadership position for vehicle and tractor finance in the
rural and semi urban markets. MMFSL has taken special efforts
to ensure controlling of NPA accounts. The new branches
49
opened by MMFSL at the village levels are aimed at improving

collections and providing services closer to the customers
doorstep. MMFSL currently has a network of 893 offices and
Total Assets Under Management of Rs. 34,133 crores as on
31stMarch, 2014 as against Rs.27,913 crores as on 31stMarch,
2013, a growth of 22%. It reported a total consolidated income
of Rs.5,300.55 crores during the current year as compared to
Rs.4,112.96 crores in the previous year a growth of 28.9%. The
consolidated profit after tax for Financial Year 2014 grew from
Rs.927.03 crores in the previous year to Rs.954.42 crores in the
current year.
The Groups Korean subsidiary, Ssangyong Motor Company
Limited turned in a significantly improved performance with a
20% growth in revenue and posted a profit in Financial Year
2014 as compared to a loss in the previous year.
Mahindra Lifespace Developers Limited (MLDL), the Groups
subsidiary in the business of real estate and infrastructure
registered a consolidated operating income of Rs.705.26 crores
as compared to Rs.738.34 crores in the previous year. On an
overall basis, the current year was subdued as investment
decisions by households and corporates were postponed and
approval cycles lengthened. The consolidated profit after

tax after minority interest for the year is Rs.100.63 crores as
compared to Rs.141.37 crores in the previous year.
Segment Results (before exceptional item)

The results achieved by major business segments of the Group
are given below:
(Rs. crores)
Segments
FY2014
FY2013
1.
Automotive
2,358.05
2,330.01
2.
Farm Equipment
2,479.76
1,827.56
3.
Financial Services
1,460.93
1,284.03
4.
Steel Trading & Processing
95.35
88.09
5.
Infrastructure
160.64
242.58
6.
Hospitality
120.56
141.11
7.
IT Services
30.35
221.78
8.
Systech
(26.85)
(44.42)
9.
Others
(502.84)
(295.31)
10. Eliminations
Total
2.04
25.63
6,178.00
5,821.06
Disclaimer
Certain statements in the Management Discussion and Analysis describing the Companys objectives, projections, estimates,
expectations or predictions may be forward-looking statements within the meaning of applicable securities laws and regulations.
Actual results could differ from those expressed or implied. Important factors that could make a difference to the Companys
operations include raw material availability and prices, cyclical demand and pricing in the Companys principal markets, changes
in Government regulations, tax regimes, economic developments within India and the countries in which the Company conducts
business and other incidental factors.
50
Corporate
Governance
Your Company has a strong legacy of fair, transparent and
effect from the close of working hours on 13th November, 2013
ethical governance practices and ensures that its goals are
and has been appointed as Non-Executive Director on the
met with integrity. The Company believes that good
Board of Directors of the Company with effect from
governance goes beyond working results and financial
14th
propriety and is a pre-requisite for attainment of excellence
Directors, comprising of nine Independent Directors and one
in performance.
Non-Independent Non-Executive Director as on 31st March,
A Report on compliance with the Code of Corporate Governance

as prescribed by the Securities and Exchange Board of India
("SEBI") and incorporated in the Listing Agreement of the
Stock Exchanges is given below.
Recently, SEBI has sought to amend Clause 49 of the Listing
Agreement to bring in additional Corporate Governance norms
for listed companies. The amendments will be effective from
1st October, 2014.
I. Board of Directors
The composition of the Board of your Company is in conformity
with Clause 49 of the Listing Agreement, as amended from
time to time. The Chairman & Managing Director of the
Company, though a Professional Director in his individual
capacity, is a Promoter and the number of Non-Executive
Independent Directors is more than one-half of the total
November,
2013.
The
remaining
Non-Executive
2014 possess the requisite qualifications and experience in

general corporate management, finance, banking, insurance,
economics and other allied fields which enable them to
contribute effectively to the Company in their capacity as
Directors of the Company.
Apart from reimbursement of expenses incurred in the discharge
of their duties, the remuneration that these Directors were
entitled to under the Companies Act, 1956 as Non-Executive
Directors and the remuneration that a Director received for
professional services rendered to the Company through a
firm in which he is a partner, none of these Directors has any
other material pecuniary relationships or transactions with the
Company, its Promoters, its Directors, its Senior Management
or its Subsidiaries and Associates which in their judgment
would affect their independence. None of the Directors of the
Company is inter-se related to each other.
number of Directors. The Board reviews and approves strategy
Professional fees for the year under review to Khaitan & Co.,
and oversees the actions and results of the management to
Advocates & Solicitors, in which Mr.R. K. Kulkarni,
ensure that the long term objectives of enhancing stakeholders
Non-Executive and Independent Director is a partner, amounted
value are met.
to Rs. 347.70 lakhs (including out of pocket expenses).
Mr.Anand G. Mahindra, Chairman & Managing Director and
The Senior Management of the Company have made
Dr.Pawan Goenka, Executive Director (appointed with effect
disclosures to the Board confirming that there are no material,
from 23 September, 2013) are the Whole-time Directors of
financial and/or commercial transactions between them and
your Company. Mr. Bharat Doshi, Executive Director & Group
the Company which could have potential conflict of interest
Chief Financial Officer of the Company, has resigned with
with the Company at large.
rd
53
A. Composition of the Board

The Board comprised of thirteen Directors as on 31st March, 2014. The names and categories of Directors, the number of Directorships
and Committee positions held by them in the companies are given below. None of the Directors on the Board is a Member of more
than 10 Committees and Chairman of more than 5 Committees (as specified in Clause 49 of the Listing Agreement), across all the
companies in which he/she is a Director.
Directors
Category
Total Number of Directorships of public companies*,

Committee Chairmanships and Memberships
as on 31st March, 2014
Directorships$
Committee
Chairmanships+
Committee
Memberships+
NON-EXECUTIVE
Mr.Deepak S. Parekh
Independent
Mr.Nadir B. Godrej
Independent
10
Mr.M. M. Murugappan
Independent
11
Mr.Bharat Doshi@@
Non-Independent
Mr.A. K. Nanda
Non-Independent
12
Mr.Narayanan Vaghul
Independent
Dr.A. S. Ganguly**
Independent
Mr.R. K. Kulkarni
Independent
Mr.Anupam Puri
Independent
Independent
Independent
Mrs. D. Vijayalakshmi@
[Nominee of Life Insurance Corporation of
India ("LIC")]
Independent
Mr.S. B. Mainak^
(Nominee of LIC)
EXECUTIVE
Independent^^
Mr.Anand G. Mahindra
(Chairman & Managing Director)
Promoter
Dr.Pawan Goenka++
(Executive Director)
Non-Independent
12
* Excludes private limited companies, foreign companies, companies registered under section 25 of the Companies Act, 1956 and
Government Bodies.
$ Excludes Alternate Directorships but includes Additional Directorships and Directorship in Mahindra & Mahindra Limited.
+ Committees considered are Audit Committee and Stakeholders Relationship Committee, including that of Mahindra & Mahindra
Limited. Committee Membership(s) and Chairmanship(s) are counted separately.
@@
Resigned as the Executive Director and also as a Director of the Company with effect from the close of working hours on
13th November, 2013. He has been appointed as an Additional Director on the Board of Directors of the Company, with effect from
14th November, 2013.
** Ceased to be a Director with effect from 13th August, 2013.
@ Appointed as an Additional Director with effect from 25th October, 2012 and resigned with effect from 5th June, 2013.
^ Appointed as an Additional Director with effect from 13th November, 2013.
^^ Non-Independent Director with effect from 1st April, 2014 as per the Companies Act, 2013.
++ Appointed as an Executive Director with effect from 23rd September, 2013.
54
B. Board Procedure
A detailed Agenda folder, which is sent to each Director in
advance of the Board Meetings and of the Committee Meetings
as well as soft copy of the said Agenda(s), Presentation(s), etc.
are also uploaded on the Board Portal to provide web-based
solution that acts as a document repository. To enable the
Board to discharge its responsibilities effectively, the Chairman
& Managing Director apprises the Board at every Meeting
of the overall performance of the Company, followed by
Presentations by the concerned Sector President(s). A detailed
functional Report is also presented at the Board Meeting(s).
The Board also, inter alia, reviews strategy and business
plans, annual operating and capital expenditure budget(s),
investment and exposure limit(s), compliance report(s) of all
laws applicable to the Company, as well as steps taken by
your Company to rectify instances of non-compliances, review
of major legal issues, minutes of the Board Meetings of your
Companys subsidiary companies, significant transactions
and arrangements entered into by the unlisted subsidiary
companies, approval of quarterly/half-yearly/annual results,
significant labour issues, presentations and note on safety and
risk management, transactions pertaining to purchase/disposal

of property(ies), major accounting provisions and write-offs,
corporate restructuring, Minutes of Meetings of the Audit and
other Committees of the Board and information on recruitment
of Officers just below the Board level, including the Company
Secretary and Compliance Officer.
C. Number of Board Meetings, Attendance of the

Directors at Meetings of the Board and at the
Annual General Meeting
During the year 1st April, 2013 to 31stMarch, 2014, six Board
Meetings were held on the following dates 30 th May, 2013,
14th June, 2013, 13th August, 2013, 13th November, 2013,
14th & 15th February, 2014 (one meeting) and 28th March,
2014. The gap between two Meetings did not exceed four
months. These Meetings were well attended. The 67th Annual
General Meeting (AGM) of the Company was held on
13th August, 2013.
The attendance of the Directors at these Meetings was
as under:
Number of Board
Meetings attended
Attendance at the
AGM
Mr.Anand G. Mahindra
Yes
Dr.Pawan Goenka$
N.A.
Mr.Bharat Doshi#
Yes
Mr.Deepak S. Parekh
Yes
Mr.Nadir B. Godrej
Yes
Mr.M. M. Murugappan
Yes
Directors
Mr.A. K. Nanda
Yes
Mr.Narayanan Vaghul
Yes
Dr.A. S. Ganguly**
No
Mr.R. K. Kulkarni
Yes
Mr.Anupam Puri
Yes
Yes
Yes
Mrs. D. Vijayalakshmi@
N.A.
Mr.S. B. Mainak^
N.A.
$ Appointed as an Executive Director with effect from 23rd September, 2013.

#
Resigned as the Executive Director and also as a Director of the Company with effect from the close of working hours on
13th November, 2013. He has been appointed as an Additional Director on the Board of Directors of the Company, with effect from 14th
November, 2013.
** Ceased to be a Director with effect from 13th August, 2013.
@ Appointed as an Additional Director with effect from 25th October, 2012 and resigned with effect from 5th June, 2013.
^ Appointed as an Additional Director with effect from 13th November, 2013.
55
D. Meetings of Independent Directors

The Independent Directors of the Company meet before the
Board Meetings to examine various Corporate Governance
issues, functioning of the Company and of the Group and
other issues without the presence of Chairman & Managing
Director or Executive Director or CFO, Group CIO & Executive
Vice President Group M&A or any other Management
Personnel. These Meetings are conducted in an informal and
flexible manner to enable the Independent Directors to discuss
matters pertaining to the affairs of the Company and put forth
their views and recommend their suggestions to the Board.
Mahindra USA Inc., Mahindra & Mahindra South Africa (Pty.)

Limited and Ssangyong Motor Company. He is also on the
Boards of Mahindra & Mahindra Limited, Mahindra & Mahindra
Financial Services Limited, Mahindra Engineering Services
Limited, Sylvan Realty Private Limited, Mahindra First Choice
Wheels Limited, Mahindra Two Wheelers Limited, Association
of Indian Automobiles Manufacturers, Jiangxi Mahindra Yueda
Tractor Company Limited, Mahindra Yueda (Yancheng) Tractor
Company Limited, Swaraj Engines Limited, Mumbai Mantra
Media Limited, National Skill Development Corporation and
Mahindra 'Electoral Trust' Company.
Dr.Goenka is a Member of the following Board Committees:
E. Directors seeking Appointment/Re-appointment

Dr.Pawan Goenka
Often referred to as the father of the Scorpio, Dr.Goenka is
President of the Automotive and Farm Equipment Sectors of
the Group. He joined the Company in October, 1993 as General
Manager, R&D. In April, 2003 he was appointed COO of the
Automotive Sector, in September, 2005 he became President,
and in April, 2010 he assumed responsibility for both the
Automotive and Farm Equipment Sectors. He was appointed to
the post of Executive Director of Mahindra & Mahindra Limited
in 2013.
Dr.Goenka holds a Bachelor of Science in Mechanical
Engineering from IIT, Kanpur. Post his Engineering degree,
he earned his PhD from Cornell University, USA. He is
also a Graduate of the Harvard Business School Advanced
Management Program. He is an internationally acknowledged
scientist-manager with several citations to his credit.
Sr.
No.
1.
Name of the
Company
Mahindra & Mahindra
Limited
Name of the Committee

Corporate Social
Responsibility
Committee
Position
held
Member
Research & Development Member

Committee
2.
Mahindra Engineering Audit Committee

Services Limited
3.
Mahindra & Mahindra

Financial Services
Limited
Loans & Investment

Committee
Member
4.
Mahindra Vehicle
Manufacturers
Limited
Audit Sub-Committee
Member
Nomination &
Remuneration
Committee
Member
Mahindra Two
Wheelers Limited
Audit Committee
Member
Nomination &
Remuneration
Committee
Member
6.
Mahindra Reva
Electric Vehicles
Private Limited
Nomination &
Remuneration
Committee
Chairman
7.
Swaraj Engines
Limited
Remuneration
Committee
Member
8.
Ssangyong Motor
Company
Management
Committee
Chairman
9.
Mahindra Heavy
Engines Private
Limited*
Audit Committee
Member
Borrowing Committee
Member
Nomination &
Remuneration
Committee
Member
10. Mahindra Trucks and

Buses Limited**
Audit Committee
Member
Nomination &
Remuneration
Committee
Member
5.
Member
Before joining the Company, Dr.Goenka spent 14 years with

General Motors ("GM") in Detroit, USA and is credited with
pioneering research in engine design and development. His
methods for the analysis of engine bearings and engine friction
are still in use 20 years later, and in 2007 he was honoured
as 'Man of the Year' by Autocar Professional, Indias leading
auto magazine. In 2011, he was named 'Automotive Man of
the Year' at the annual NDTV Car & Bike Awards. He is a fellow
of SAE International and of the Indian National Academy of
Engineers. Dr.Goenka is the past President of SIAM, Society of
Indian Automobile Manufacturers and ARAI Governing Council,
and is currently on the Board of National Skills Development
Corporation ("NSDC"). He is also a National Council Member
of Confederation of Indian Industry ("CII") and Chairman of
Board of Governors of IIT, Madras.
* Ceased to be a Member with effect from 26th April, 2014.

** Ceased to be a Member with effect from 30th April, 2014.
Dr. Goenka is the Chairman of Mahindra Vehicle Manufacturers

Limited, Mahindra Reva Electric Vehicles Private Limited,
Dr.Goenka holds 1,50,768 Ordinary (Equity) Shares in the

Company.
56
Mr.Bharat Doshi
Mr.Bharat Doshi joined the Company in 1973 as an Executive. He
is a fellow Member of The Institute of Chartered Accountants
of India ("ICAI") and The Institute of Company Secretaries
of India ("ICSI") and has a Masters Degree in Law from the
University of Bombay. He has also participated in the Program
for Management Development at Harvard Business School. He
was also a Fellow of the Salzburg Seminar on Asian Economies:
Regional and Global Relationships held in December, 2000.
Mr.Doshi was Executive Vice President (Corporate Affairs) from
July, 1991 to August, 1992. In August, 1992, he joined the Board
of the Company as an Executive Director in charge of Finance
& Accounts, Corporate Affairs and Information Technology. In
addition, he was the President of the Trade & Financial Services
Sector from December, 1994 to October, 2007. Mr.Doshi was
designated as Executive Director and Group Chief Financial
Officer (Group CFO) from October, 2007 to November, 2013.
In November, 2013, he transited from his position as Executive
Director & Group CFO to Non-Executive Director.
Mr.Doshi is a Trustee of the Mahindra Foundation and the
K. C. Mahindra Education Trust. He is on the Board of Governors
of Indian Institute of Management, Tiruchirappalli. He has
been associated with the Bombay Chamber of Commerce &
Industry (BCCI) for over 30 years and served as its President for
the year 2009-10. He was one of the Founding Members of the
Governing Council of InAct (Indian Association of Corporate
CFOs & Treasurers), now renamed Association of Finance
Professionals of India (AFPI).
Mr.Doshi was a Member of the High Powered Expert
Committee constituted by the Ministry of Finance, Government
of India, on making Mumbai an International Financial Centre.
Mr.Doshi was a Member of the Securities and Exchange Board
of India ("SEBI") Committee on Disclosures and Accounting
Standards (SCODA).
Mr.Doshi was a Member of the Working Group constituted by
Reserve Bank of India (RBI) to examine a range of emerging
issues pertaining to regulation of the Non-Banking Financial
Companies ("NBFCs") Sector. He was also a Member of the
RBI constituted Committee of Comprehensive Financial Services
for Small Businesses and Low-Income Households (CCFS).
Mr.Doshi is a Member of CII National Council on Corporate
Governance & Regulatory Affairs.
Mr.Bharat Doshi was adjudged Indias Best CFO by the
leading business fortnightly Business Today (India Today Group
Publication) in April, 2005. He was also conferred the CFO of
the Year Award, honouring financial excellence by IMA India,
an associate of The Economist Group, in December, 2005. In

November, 2007, Mr.Bharat Doshi was honoured with the
prestigious CNBC CFO of the Year 2007 Award. In March,
2011, he was inducted by CFO India as a Founding Member to
the CFO Hall of Fame in recognition of an exemplary career
and a lifetime of contribution to the field of Finance. In
February, 2013, he was awarded the CA Business Achiever
Corporate Award by ICAI for his exceptional performance and
achievements in the sphere of business.
Mr. Doshi is the Chairman of Mahindra & Mahindra Financial
Services Limited and Mahindra Intertrade Limited. He is on
the Boards of several companies viz. Mahindra & Mahindra
Limited, Tech Mahindra Limited, Mahindra Holdings Limited,
The Mahindra United World College of India, Indian Council on
Global Relations, Mahindra Foundation (USA) and Mahindra
Foundation (UK). He is an Independent Director on the Boards
of Godrej Consumer Products Limited and NSE.IT Limited.
Mr.Doshi is a Member of the following Board Committees:
Sr.
No.
1.
Name of the
Company
Mahindra &
Mahindra Limited
Position
held
Audit Committee
Member
Stakeholders Relationship
Committee (earlier known
as Share Transfer and
Shareholders/Investors
Grievance Committee)
Member
Loans & Investment

Committee
Member

Committee
Member
Corporate Social
Responsibility Committee
Member
Strategic Investment
Committee
Member
2.
Mahindra
Intertrade Limited
Nomination & Remuneration Member

Committee
3.
Godrej Consumer
Products Limited
Audit Committee
Mahindra &
Mahindra
Financial Services
Limited
Corporate Social
4.
Chairman

Committee
Chairman

Committee
Loans & Investment
Committee
Member
5.
Mahindra
Holdings Limited
Loans & Investment

Committee
Member
6.
Tech Mahindra
Limited
Executive Committee
Member
Mr.Doshi holds 5,95,508 Ordinary (Equity) Shares in the

Company.
57
Mr.Deepak S. Parekh
Limited, GlaxoSmithKline Pharmaceuticals Limited and Siemens
Mr.Deepak Parekh spearheads Indias premier housing finance
Limited. He is on the Boards of The Indian Hotels Company
company, Housing Development Finance Corporation Limited

("HDFC"), which has turned the dream of owning a home into
a reality for millions across the country. His astute business
acumen and farsightedness has not only made HDFC the leader
Limited, Mahindra & Mahindra Limited and International

Boards of D P World UAE and Vedanta Resources Plc. He is an
Alternate Director on the Board of Zodiac Clothing Company
Limited. He is also on the Advisory Boards of several Indian
in Mortgages, but has also transformed it into Indias leading
Corporates and MNCs.
Financial Services Conglomerate with presence in Banking,
Mr.Parekh is a Member of the following Board Committees:
Asset Management, Life Insurance, General Insurance, Real

Estate Venture Fund and Education Loans.
Sr.
No.
In addition to being known for his vociferous views seeking
1.
Name of the
Company
Audit Committee
Chairman
Committee
Member
GlaxoSmithKline
Pharmaceuticals
Limited
Investors Grievance
Committee
Chairman
Audit Committee
Member
3.
The Indian Hotels

Company Limited
Audit Committee
Member
4.
Siemens Limited
Member
Audit Committee
Member
Mr.Parekh is dubbed as the unofficial crisis consultant of

and getting UTI from the mess (late 90s), it is his quality of
2.
a trouble-shooter that has made him a guiding force and an

active member of high-powered Advisory Committees and
Task Forces. Some of the current ones are:

Chairman of CERC Compensation and Tariff Committee;
Committee to look at enhancing domestic production of oil

and gas and sustainable reduction in import dependency
Mr.Parekh holds 1,12,180 Ordinary (Equity) Shares in the
by 2030;

Chairman
of
High
level
Committee
on
Financing
Infrastructure;

Position
held
Mahindra &
Mahindra Limited
standardisation and transparency in the real estate sector,

the Government. Be it his role of reviving Satyam (2009)
Sub-Committee of PMs Council on Trade & Industry for

promoting Financial Inclusion.
Some of the international organisations which Mr.Parekh is

associated with in an advisory capacity, include Indo US CEO
Forum, City of London, Nehru Trust for Cambridge University
(Trustee), Euro India Centre, INSEAD, Indo German Chamber
of Commerce, Asia Society and Indian School of Business.
Company.
Mr.Nadir B. Godrej
Mr.Nadir Godrej holds a Bachelors degree of Science (Chemical
Engineering) from Massachusetts Institute of Technology,
a Masters degree in Chemical Engineering from Stanford
University and a Masters degree in Business Administration
from Harvard Business School. He has over 38 years of
experience in the Chemicals and Agribusiness industry. He is a
Member of various Committees of the Confederation of Indian
Government and Industry have honoured him with several
Industry ("CII"), a Member of the Board of Trustees and various
awards, some of the most important ones are; the Padma
Committees at the Foundation for Medical Research. He is
Bhushan in 2006; Republic of France conferred the honour,
also, currently, the Chairman of the CII National Committee on
Knight in the Order of the Legion of Honour one of the
Chemicals and the President of Alliance Francaise De Bombay.
highest distinction by the French Republic in 2010 and he
He has previously worked with Godrej Soaps Limited and
was also the first international recipient of the Institute of
Gujarat-Godrej Innovative Chemicals Limited as a Director and
Chartered Accountants in England and Wales Outstanding
Managing Director, respectively.
Achievement Award 2010.
Mr. Godrej is currently the Managing Director of Godrej
Mr. Parekh is the Non-Executive Chairman of Housing
Industries Limited. He is the Chairman of Godrej Agrovet
Development Finance Corporation Limited, HDFC Asset
Limited, Godrej Tyson Foods Limited and Poultry Processors
Management Company Limited, HDFC Standard Life Insurance
Association of India. He is also on the Boards of Godrej &
Company Limited, HDFC ERGO General Insurance Company
Boyce Manufacturing Company Limited, Godrej Properties
58
Limited, Godrej Consumer Products Limited, Mahindra &

Mahindra Limited, Tata Teleservices (Maharashtra) Limited,
Isprava Technologies Limited, The Indian Hotels Company
Limited, Godrej International Limited, Godrej Consumer
Products (UK) Limited, Godrej Global Mid East FZE, ACI Godrej
Agrovet Private Limited, Bangladesh and Godrej South Africa
(Pty) Limited.
Mr.Godrej is a Member of the following Board Committees:
Sr.
No.
Name of the
Company
1.
Mahindra &
Mahindra Limited
Position
held
Audit Committee
Member
Committee
Member

Committee
Member
Governance, Nomination and

(earlier known as
Governance, Remuneration
and Nomination Committee)
Member
Godrej Consumer
Products Limited
Stakeholders Committee
Chairman
CSR Committee
Chairman
3.
The Indian Hotels

Company Limited
Nomination Committee
Member
4.
Godrej Industries
Limited
Corporate Social
Chairman
Stakeholders Relationship/
Shareholders Committee
Member
Nomination and
Compensation Committee
Member
2.
Mr.Godrej holds 3,83,086 Ordinary (Equity) Shares in the

Company.
Mr.M. M. Murugappan
Mr.M. M. Murugappan serves as the Vice Chairman of the
Corporate and Supervisory Board of the Murugappa Group. As
a Member of the Board, he chairs the Investment Committee
and oversees Technology and Research across the Murugappa
Group. In addition, he is the Chairman of businesses falling
under the Engineering Sector i.e. Tube Investments of India
Limited ("TIIL") and Carborundum Universal Limited ("CUMI")
of the Murugappa Group.
After a brief stint in the field of Environmental Engineering
Design in the United States, Mr.Murugappan joined CUMI in
the year 1979.
In January, 2004, Mr.Murugappan took over as the Chairman
of CUMI, playing a pivotal role in transforming CUMI into
an international company. He has broken new grounds

in positioning CUMI as a technology and innovationdriven organisation. His strategic approach towards
business partnerships with global leaders has been one of
the key factors contributing to CUMIs consistent growth,
internationally.
In April, 2006, Mr.Murugappan was appointed as the
Chairman of TIIL. At TIIL, he is very involved, together with the
Team, in developing a strong engineering focused business to
address opportunities in the Transportation Sector as a critical
component supplier. Here too, he has facilitated relationships
with global leaders and has encouraged research, innovation
and strong customer partnerships.
As Trustee of the Groups AMM Foundation, he is actively
involved in the development of various citizenship initiatives,
particularly in education and health care.
Mr.Murugappan holds a Bachelors degree in Chemical
Engineering from the AC College of Technology and a Master
of Science Degree also in Chemical Engineering from the
University of Michigan, USA. He is a Member of the American
and Indian Institutes of Chemical Engineers and the Plastics &
Rubber Institute. He was recently elected as a Fellow Member
of the Indian Ceramic Society.
Mr. Murugappan currently has a host of other responsibilities
ranging
from
being
Chairman
of
Carborundum
Universal Limited, Wendt India Limited, Shanthi Gears Limited,
Foskor Zirconia Limited (South Africa), CUMI Abrasives and
Ceramics Company Limited, China, Murugappa Morgan
Thermal Ceramics Limited, MEL Systems & Services Limited,
Cholamandalam MS Risk Services Limited and Net Access
India Limited. He is on the Boards of several other companies
such as Mahindra & Mahindra Limited, Cyient Limited,
Tube Investments of India Limited, Thukela Isithebe Proprietary
Limited, South Africa, Parry Enterprises India Limited,
Ambadi Investments Private Limited, Idea Lab (India) Private
Limited, New Ambadi Estates Private Limited, M M Muthiah
Research Foundation, Murugappa Educational and Medical
Foundation, A M M Medical Foundation and Volzhsky
Abrasive Works, Russia. Mr. Murugappan is also Vice Chairman
of Murugappa Holdings Limted. Mr. Murugappan served on
the Board of Governors of IIT Madras, for six years till
November, 2011 and has enabled many industry academic
partnerships. He now serves on the Board of the IIT-Madras
Research Park.
59
Mr.Murugappan is a Member of the following Board

Committees:
Sr.
Name of the
No.
Company
1. Mahindra &
Mahindra
Limited
2.
3.
4.
5.
6.

Committee
Audit Committee
Governance, Nomination
and Remuneration
Committee (earlier known as
Carborundum
Shareholders and Investors
Universal Limited Grievance Committee
Tube Investments Shareholders and Investors
of India Limited
Grievance Committee
Loans Committee
Shares & Debentures
Committee
Compensation and
Nomination Committee
Wendt India
Shareholders and Investors
Limited
Grievance Committee
Cyient Limited
Audit Committee
(Formerly known Compensation & Nomination
as Infotech
Committee
Enterprises
Limited)
Shanthi Gears
Audit Committee
Limited
Position
held
Chairman
Member
Member
Chairman
Chairman
Member
Member
Member
Chairman
Chairman
Chairman
Member
Mr. Murugappan holds 1,00,000 Ordinary (Equity) Shares in the

Company.
documentation, obtaining regulatory approvals, joint venture

and licensing, shareholder agreements and arrangements,
technology transfers, import of plant and equipment, etc.
In Infrastructure and Project Financing - such as advice and
documentation relating to corporate financing, debt issues,
including concession agreements, construction contracts,
operation & maintenance contracts, etc. He has also
considerable experience in litigation having handled writs and
civil litigation.
He advises a range of large Indian and multinational clients
in various business sectors, including infrastructure, power,
telecom, automobile, engineering, steel, cement, agriculture
and agri-products, software and information technology, retail
services, etc.
Mr. Kulkarni is on the Boards of various companies such as
Mahindra & Mahindra Limited, Elantas Beck India Limited,
Styrolution ABS (India) Limited, Entertainment Network
(India) Limited, Khaitan Consultants Limited, Lavgan Dockyard
Limited, Tech Mahindra Limited, Chowgule Steamships Limited
and Shamrao Vithal Co-op. Bank Limited.
Mr.Kulkarni is a Member of the following Board Committees:
Sr.
Name of the
No.
Company
1. Mahindra &
Mahindra
Limited
Mr.R. K. Kulkarni
Mr.R. K. Kulkarni, B.Sc., LL.M, is a practicing Advocate and
Solicitor and is a Senior Partner in Khaitan & Co., Advocates
& Solicitors.
He has immense experience in all aspects of Corporate law;
Mergers & Acquisitions - such as due diligence, structuring
documentation involving listed companies, cross-border
transactions in Capital Markets - such as advice and
documentation relating to domestic IPOs and GDR/FCCB
offerings of securities by Indian companies; in Securities
Law - such as insider trading, takeover-code, public offers,
buyback of securities, etc.; in Restructuring - such as advice
and documentation involving creditors restructuring, sick
companies, demergers, spin-offs, sale of assets, etc. In
Privatisation - such as advice and documentation in relation
to privatisation of Government business and companies in
India on behalf of several bidders, etc.; in Foreign investment,
Joint Venture and Foreign Collaboration - such as advice and
60
2.
3.
4.
5.
Elantas Beck
India Limited
Tech Mahindra
Limited
Entertainment
Network (India)
Limited
Styrolution ABS
(India) Limited

Audit Committee
Stakeholders Relationship
Committee (earlier known
as Share Transfer and
Shareholders/Investors
Grievance Committee)
Governance, Nomination
and Remuneration
Committee (earlier known as
Loans & Investment
Committee
Position
held
Member
Member
Member
Member
Corporate Social
Audit Committee
Member
Investor Grievances and
Share Transfer Committee
Audit Committee
Chairman
Chairman
Audit Committee
Member
Member
Chairman
Member
Member
Mr.Kulkarni holds 83,088 Ordinary (Equity) Shares in the

Company.
Mr.Anupam Puri
Mr.Anupam Puri holds an M.Phil. in Economics from Nuffield
College, Oxford University, 1969; an M.A. in Economics from
Balliol College, Oxford University, 1967; and a B.A. in Economics
from Delhi University, India, 1965. Mr.Puri was a Management
Consultant with McKinsey & Company from 1970 to 2000. He
has worked globally with corporate clients in several industries
on strategy and organisational issues and has also served several
Governments and multilateral institutions on public policy.
Mr.Anupam Puri spearheaded the development of McKinseys
India practice, oversaw the Asian and Latin American offices
and was an elected Member of the Board.
Mr. Puri is currently a Member on the Boards of Dr. Reddys
Laboratories Limited, Mahindra & Mahindra Limited, Tech
Mahindra Limited and Mumbai Mantra Media Limited as well
as on the Advisory Boards of Corsair Capital and Spencer
Stuart, India.
Mr.Puri is a Member of the following Board Committees:
Sr.
No.
Name of the
Company
1.
Mahindra & Mahindra

Limited
Committee
Member
2.
Dr.Reddys
Laboratories Limited
Governance and
Compensation
Committee
Chairman
3.
Tech Mahindra
Limited
Audit Committee
Member
Compensation
Committee
Member
Mumbai Mantra
Media Limited
Audit Committee
Member
4.
Position
held
Mr. Puri does not hold any Ordinary (Equity) Shares in the
Company.
Dr.Vishakha N. Desai is Special Advisor for Global Affairs to the
President of Columbia University and Professor of Professional
Practice at the School of International and Public Affairs.
She also serves as Senior Advisor for Global Programs to the
Solomon R. Guggenheim Foundation. From 2004 through 2012,
Dr.Desai served as President and CEO of the Asia Society, a
global organisation dedicated to strengthening partnerships
between Asia and the U.S. Under her leadership, the Society
expanded the scope and scale of its activities with the opening
of new Offices in India and Korea, a new center of U.S.China
Relations, internationally recognised education programs, and
inauguration of two new architecturally distinguished facilities
in Hong Kong and Houston.
In 2012, in recognition of Dr.Desais leadership in the museum

field, President Barack Obama appointed her to serve on
the National Museum and Library Services Board. She is an
Advisory Trustee of the Brookings Institution and a Trustee of
the Bertelsmann Foundation, AFS Intercultural Programs. She
serves as a Member of the International Advisory Committee
for the Auroville Foundation, India, as well as on the Corporate
Board of Mahindra & Mahindra Limited, one of Indias largest
global corporations.
Dr.Desai holds a B.A. in Political Science from Bombay
University and an M.A. and Ph.D. in Asian Art History from
the University of Michigan, in addition to honorary degrees
from Williams College, MA 2014, Centre College, 2008; Pace
University, 2008; The College of Staten Island, NY 2006; and
Susquehanna University, PA, 1996.
Apart from Mahindra & Mahindra Limited, Dr.Desai is not
on any other Boards. She is a Member of Corporate Social
Responsibility Committee of the Company. She does not hold
any Ordinary (Equity) Shares in the Company.
Mr.Vikram Singh Mehta was until November, 2012 Chairman
of the Shell Group of companies in India. Mr.Mehtas career
began as a Member of the Indian Administrative Service of the
Government of India in 1978.
Mr.Mehta completed his Bachelors Degree in Mathematics
(Hons.) from St. Stephens College, Delhi University. He has
a Masters Degree in Politics and Economics (Hons.) from
Magdalen College, Oxford University, UK and a Masters
Degree in Energy Economics from the Fletcher School of Law
and Diplomacy, Tufts University in USA.
Mr. Mehta is the recipient of Asia House (London), Businessmen
of the Year Award 2010; he is the Co-Chairman of Energy
Committee - Confederation of Indian Industry; Member of
Board of Governors - Pandit Deendayal Petroleum University
and Member, Board of Overseers - Fletcher School of Law
and Diplomacy, Tufts University. He was the former Chairman,
Young Peoples Award Programme India (erstwhile Duke of
Edinburghs Award) and Member, Board of Governors, Indian
Public Schools Society. He has a monthly columnOver the
Barrel in the IndianExpress and Financial Express.
Mr. Mehta is the Chairman of the think tank Brookings India. He
is a Non-Executive Director of Mahindra & Mahindra Limited,
Larsen & Toubro Limited, Vodafone India Limited, United
Spirits Limited, Thomson Reuters Founder Share Company,
Colgate-Palmolive (India) Limited, Hindustan Media Ventures
Limited, N V Advisory Services Private Limited, Brookings
Institution India Center, Apollo Tyres Limited, Mahindra
'Electoral Trust' Company and L&T Hydrocarbon Engineering
Limited.
61
Mr.Mehta is a Member of the following Board Committees:

Sr.
No.
Name of the
Company
1.
Mahindra & Mahindra

Limited
Position
held
Loans & Investment

Committee
Member
Committee
Member
2.
Colgate-Palmolive
(India) Limited
Audit Committee
Member
3.
Larsen & Toubro

Limited
CSR Committee
Chairman
Power Business Units
Member
4.
Vodafone India
Limited
Remuneration
Committee
Chairman
5.
United Spirits Limited
Audit Committee
Member
Mr. Mehta does not hold any Ordinary (Equity) Shares in the
Company.
Mr. Mainak is currently the Managing Director of LIC of

India. He is the Chairman of LIC Nomura Mutual Fund Trustee
Company Private Limited. He is also on the Boards of National
Stock Exchange of India Limited, Mahindra & Mahindra Limited,
ITC Limited, LIC Cards Services Limited and LIC (Nepal) Limited.
He was on the Boards of Stock Holding Corporation of India
and LIC Pension Fund Company Limited.
Mr.Mainak is a Member of the following Board Committees:
Sr.
Name of the
No.
Company
1. LIC of India
2.
LIC (Nepal) Limited
3.
National Stock
Exchange of India
Limited
ITC Limited
Mr.S. B. Mainak
Mr.S. B. Mainak, Managing Director of Life Insurance
Corporation of India (LIC), is a Chartered Accountant. Prior
to his joining as Managing Director, he was Executive Director
(Investment Operations) managing LICs funds of more than
Rs. 14 lakh crore. He joined LIC as a Direct Recruit Officer
(CA Batch) in the year 1983.
During his stint in LIC he has acquired a wide range of
experience working not only in Finance and Accounts, but also
in Marketing assignment as Senior Branch Manager, Divisional
Manager of Pension & Group Superannuation and in various
capacities in Investment Department and in Academics during a
stint in National Insurance Academy ("NIA"), Pune as Professor
(Life Insurance) and Head of Finance Department of NIA where
he has been instrumental in creating new teaching programs
relating to finance and investment for officials of Insurance
Companies.
He was instrumental in setting up LIC Pension Fund Company
Private Limited. During his recent stint in Investment
Department as Executive Director (Investment Operations)
there has been an appreciable increase in profits generated by
churning of Securities, including Debt and Equities and niftier
investment of funds generating improved investment yields.
He is Deputy President of Insurance Institute of India and
Member of Governing Board of NIA, Pune. He was also
appointed by the Government of India on the Board of
Satyam Computer Services Limited as Independent Director
for restructuring the company. He was on the Board of Stock
Holding Corporation of India Limited.
He has been earlier conferred with NDTV Profit Business
Leadership Award 2009, CNN-IBN Indian of the Year Award
2009 and Dataquest IT Persons of the Year 2009.
62
4.

Investment Committee
Position
held
Member
Executive Committee
Member
Social Security
Committee
Grievance Redressal
Committee
Audit Committee
Risk Management
Committee
Committee for Approval
of Acquisition of
premises (CAAP)
CSR & Sustainability
Committee
Member
Member
Chairman
Member
Member
Member
Mr.Mainak does not hold any Ordinary (Equity) Shares in the

Company.
F. Codes of Conduct
The Board has laid down two separate Codes of Conduct
(Codes), one for the Board Members and the other
for Senior Management and Employees of the Company.
These Codes have been posted on the Companys website
http://www.mahindra.com. All the Board Members and Senior
Management Personnel have affirmed compliance with these
Codes. A declaration signed by the Chairman & Managing
Director to this effect is enclosed at the end of this Report.
The Code of Conduct for the Board Members of the Company
has been amended in line with the provisions of section 166 of
the Companies Act, 2013.
The Board further has also laid down a Code for Independent
Directors, which is a guide to professional conduct for
Independent Directors of the Company pursuant to
section 149(8) and Schedule IV of the Companies Act, 2013.
G. CEO/CFO Certification
As required under Clause 49 V of the Listing Agreement with
the Stock Exchanges, the Chairman & Managing Director and
the CFO, Group CIO & Executive Vice President Group M&A
of the Company have certified to the Board regarding the
Financial Statements for the year ended 31st March, 2014.
II. Remuneration to Directors

A. Remuneration Policy
While deciding on the remuneration for Directors, Key
Managerial Personnel and other employees, the Board and the
Governance, Nomination and Remuneration Committee (earlier
known as the Governance, Remuneration and Nomination
Committee) (Committee) takes into consideration the
performance of your Company, the current trends in the
industry, the qualification of the appointee(s), positive
attributes, their independence, experience, past performance
and other relevant factors. The Board/Committee regularly
keeps track of the market trends in terms of compensation
levels and practices in relevant industries. This information is
used to review the Companys remuneration policy(ies) from
time to time.
A commission of Rs. 221.07 lakhs has been provided as payable

to the Non-Executive Directors in the accounts for the year
under review. Non-Executive Directors are also paid sitting fees
of Rs. 20,000 each for every Meeting of the Board or Committee
attended other than Stakeholders Relationship Committee
(earlier known as the Share Transfer and Shareholders/Investors
Grievance Committee). The sitting fees for Stakeholders
Relationship Committee (earlier known as the Share Transfer
and Shareholders/Investors Grievance Committee) is Rs. 10,000
each for Non-Executive Director per Meeting.
The sitting fees paid to Non-Executive Directors and the
commission payable to them for the year ended 31st March,
2014 along with their respective Shareholdings in the Company
are as under:
Directors
Sitting Fees
paid for the
Board and
Committee
Meetings
held during
the year
ended
31st March,
2014
(Rs. in Lakhs)
Commission
for the year
ended 31st
March, 2014,
provided as
payable in the
accounts of
the Company
for the year
under review
(Rs. in Lakhs)
Mr.Deepak S. Parekh
2.80
24.00
1,12,180
Mr.Nadir B. Godrej
4.60
20.00
3,83,086
B. Remuneration to Non-Executive Directors for

the year ended 31st March, 2014
The eligible Non-Executive Directors are paid commission
upto a maximum of 1% of the net profits of the Company as
specifically computed for this purpose.
During the year under review, the Non-Executive Directors
were paid a commission of Rs. 661.59 lakhs (provided in the
accounts for the year ended 31st March, 2013), distributed
amongst the Directors as under:
(Rs. in Lakhs)
Directors
Commission for the year ended

31st March, 2013, paid during the
year under review
No. of
Ordinary
(Equity)
Shares
held as on
31st March,
2014
Mr.M. M. Murugappan
3.40
22.52
1,00,000
Mr.Bharat Doshi@
2.20
7.56
5,95,508
Mr.A. K. Nanda
2.60
24.00
2,13,058
Mr.Narayanan Vaghul
2.00
24.00
1,00,000
Dr.A. S. Ganguly$
0.80
8.88
N.A.
83,088
Mr.Keshub Mahindra@
519.95
Mr.R. K. Kulkarni
5.60*
20.00
2.00
20.00
Nil
3.25
N.A.
0.40**
6.85
Nil
Mr.Deepak S. Parekh
14.00
Mr.Anupam Puri
Mr.Nadir B. Godrej
14.00
Mrs. D. Vijayalakshmi
(Nominee of LIC)+
Mr.M. M. Murugappan
14.00
Mr.A. K. Nanda
14.00
Mr.Narayanan Vaghul
14.00
Mr.S.B. Mainak
(Nominee of LIC)++
Dr.A. S. Ganguly $
14.00
0.80
20.00
Nil
Mr.R. K. Kulkarni
14.00*
2.80
20.00
Nil
Mr.Anupam Puri
14.00
Mrs. D. Vijayalaksmi^
(Nominee of LIC)
6.10#
11.77
11.77
@ Relinquished his office as Chairman and Director of the Company at the

conclusion of the 66th AGM of the Company held on 8th August, 2012.
$ Ceased to be a Director with effect from 13th August, 2013.
*
The commission was paid to Khaitan & Co., in which Mr.R. K.
Kulkarni is a Partner.
^ Appointed as an Additional Director with effect from 25th October,
2012 and resigned with effect from 5th June, 2013.
# The commission was paid to LIC.
@ Resigned as the Executive Director and also as a Director of the Company

with effect from the close of working hours on 13th November, 2013. He
has been appointed as an Additional Director on the Board of Directors
of the Company, with effect from 14th November, 2013.
$ Ceased to be a Director with effect from 13th August, 2013.
* Sitting fees were paid to Khaitan & Co., in which Mr.R. K. Kulkarni is a
Partner.
+ Appointed as an Additional Director with effect from 25th October, 2012
and resigned with effect from 5th June, 2013.
++ Appointed as an Additional Director with effect from 13th November, 2013.
** Sitting fees for Board Meetings were paid to LIC.
Details of the Options granted to the Non-Executive Directors

including the vesting and exercise period, exercise price and
discount are given in Annexure I to the Directors Report.
63
C.
Remuneration paid/payable to Managing Director and Executive Director (Whole-time Directors)
for the year ended 31st March, 2014
Remuneration to Whole-time Directors is fixed by the Governance, Nomination and Remuneration Committee (earlier known as
Governance, Remuneration and Nomination Committee) which is subsequently approved by the Board of Directors and Shareholders
at a General Meeting.
Following is the remuneration paid/payable to the Whole-time Directors during the year ended 31st March, 2014:
Directors
(Rs. in Lakhs)
Salary*
Contract
Period
Comm- Companys Perquisites

ission Contribuand
tion to Allowances
Funds**
Mr.Anand
G. Mahindra
(Chairman
& Managing
Director)
125.47
243.94
32.93
116.32
Mr.Bharat
Doshi
(Executive
Director &
Group Chief
Financial
Officer up
to the close
of working
hours on 13th
November,
2013)
286.27
107.84
19.41
308.02
67.79
97.04
17.47
54.04
Dr.Pawan
Goenka
(Executive
Director
with effect
from 23rd
September,
2013)
*
Total
518.66 4th April,

2012 to 3rd
April, 2017
721.54 28th
August,
2012 to 13th
November,
2013
236.34 23rd
September, 2013
to 22nd
September,
2018+
No. of Options granted in***

December, 2001
Nil
June, October,
2005
2005
September, 2006
July, August, January,

2007
2008
2011
Nil
Nil
Nil
Nil
Nil
Nil
1,00,000 10,000
11,345
8,362
29,039
71,080
11,345 12,543
37,336
71,080
25,290
7,500
15,000
Includes Privilege Leave Encashment.
** Aggregate of the Companys contributions to Superannuation Fund and Provident Fund.

***
Details of the Options granted including the vesting and exercise period, exercise price and discount are given in Annexure I to the
Directors Report.
#
Includes Gratuity.
Subject to approval of the Shareholders in the forthcoming AGM.
Notes:
a.
Notice period applicable to each of the Whole-time Directors is six months.
b.
Employee Stock Options and Commission are the only components of remuneration that are performance-linked. All other components
are fixed.
64
III. Risk Management

Your Company has a well-defined risk management
framework in place. Further, your Company has established
procedures to periodically place before the Board, the risk
assessment and minimisation procedures being followed by
the Company and steps taken by it to mitigate these risks.
The risk management measures and controls are presented
to the Members of the Audit Committee and the Board of
the Company.
IV. Committees of the Board

A. Audit Committee
This Committee was re-constituted and now comprises of the
following Directors viz. Mr.Deepak S. Parekh (Chairman of
the Committee), Mr.Nadir B. Godrej, Mr.M. M. Murugappan,
Mr.R. K. Kulkarni and Mr.Bharat Doshi. Except Mr.Bharat
Doshi, all the Directors are Independent Directors. All the
Members of the Committee possess strong accounting and
financial management knowledge. The Company Secretary is
the Secretary to the Committee.
The terms of reference of this Committee are very wide.
Besides having access to all the required information from
within the Company, the Committee can obtain external
professional advice whenever required. The Committee acts as
a link between the Statutory and the Internal Auditors and
the Board of Directors of the Company. It is authorised to,
inter alia, review and monitor the Auditors independence and
performance, effectiveness of audit process, oversight of the
Companys financial reporting process and the disclosure of its
financial information, reviewing with the management, the
quarterly and annual financial statements before submission
to the Board for approval, examination of the financial
statement and the auditors report, select and establish
accounting policies, review Reports of the Statutory and the
Internal Auditors and meet with them to discuss their findings,
suggestions and other related matters, approval (wherever
necessary) of transactions of the Company with related parties
including subsequent modifications thereof, scrutiny of inter-
The Committee is also empowered to, inter alia, review the

remuneration payable to the Statutory Auditors and to
recommend a change in the Auditors, if felt necessary. Further,
the Committee is also empowered to recommend to the Board
the appointment and remuneration of the Cost Auditor &
CFO and review the functioning of the Whistle Blower Policy/
Vigil Mechanism. The Committee also reviews Financial
Statements and investments of unlisted subsidiary companies,
Management Discussion & Analysis of financial condition and
results of operations, material individual transactions with
related parties not in normal course of business or which are
not on an arms length basis, if any. Generally all items listed
in Clause 49 II (D) of the Listing Agreement are covered in the
terms of reference. The Audit Committee has been granted
powers as prescribed under Clause 49 II (C) and reviews all
the information as prescribed in Clause 49 II (E) of the Listing
Agreement. The Meetings of the Audit Committee are also
attended by the Chairman & Managing Director, the Executive
Director & Group Chief Financial Officer, the CFO, Group CIO
and Executive Vice President Group M&A, the Executive
Vice President Group M&A and Secretarial, the Executive
Vice President Corporate Finance & Investor Relations, the
Statutory Auditors, the Chief Internal Auditor, Controller of
Accounts, Executive Vice President Group Legal, Managing
Partner Mahindra Partners and the Company Secretary. The
Cost Auditor also attends the Committee Meeting at which
the Cost Audit Report(s) are considered. The Chairman of the
Audit Committee, Mr.Deepak S. Parekh was present at the
67th Annual General Meeting of the Company held on 13th
August, 2013 to address the Shareholders queries pertaining
to Annual Accounts of the Company.
The Committee met five times during the year under review.
The Committee Meetings were held on the following dates
29th May, 2013, 12th August, 2013, 11th November, 2013,
13th February, 2014 and 27th March, 2014. The gap between
two Meetings did not exceed four months. The attendance at
the Meetings was as under:
Members
Mr.Deepak S. Parekh (Chairman)
Number of Meetings
attended
5
Mr.Nadir B. Godrej
or assets of the Company, reviewing the risk assessment and
Mr.M. M. Murugappan
Mr.R. K. Kulkarni
minimisation procedures, evaluation of internal financial
Mr.Bharat Doshi*
corporate loans and investments, valuation of undertakings
controls and risk management systems, monitoring end use of

the funds, etc.
* Mr.Bharat Doshi was appointed as a Member of the Audit Committee

with effect from 13th November, 2013.
65
B. G
overnance, Nomination and Remuneration
Committee (earlier known as Governance,
Remuneration and Nomination Committee)
The Governance, Nomination and Remuneration Committee
(earlier known as Governance, Remuneration and Nomination
Committee) has been vested with the authority to, inter alia,
recommend nominations for Board Membership, develop
and recommend policies with respect to composition of the
Board commensurate with the size, nature of the business and
operations of the Company, establish criteria for selection to
the Board with respect to the competencies, qualifications,
experience, track record, integrity, establish Director retirement
policies & appropriate succession plans and determine overall
compensation policies of the Company.
The Committee also administers the Companys ESOP Schemes
formulated from time to time including Mahindra & Mahindra
Limited Employees Stock Option Scheme - 2000, Mahindra
& Mahindra Limited Employees Stock Option Scheme - 2010
and take appropriate decisions in terms of the concerned
Scheme(s).
The scope of the Committee also includes review of market
practices and decide on remuneration packages applicable to
the Chairman & Managing Director, the Executive Director(s),
Presidents, etc., lay down performance parameters for the
Chairman & Managing Director, the Executive Director(s),
Presidents, etc. and review the same.
In addition to the above, the Committee would identify
persons who are qualified to become Directors and who may
be appointed in Senior Management in accordance with the
criteria laid down, recommend to the Board their appointment
and removal and shall carry out evaluation of every Directors
performance.
The Committee also formulates the criteria for determining
qualifications, positive attributes and independence of a
Director and recommend to the Board formulation of a policy,
relating to the remuneration for the Directors, Key Managerial
Personnel and other Employees.
The Committee met five times during the year under review.
The Committee Meetings were held on the following dates30th May, 2013, 13th August, 2013, 18th September, 2013,
13th November, 2013 and 28th March, 2014. The attendance at
the Meetings was as under:
Members
Number of Meetings
attended
Mr.Narayanan Vaghul (Chairman)
Mr.Nadir B. Godrej
Mr.M. M. Murugappan
Mr.R. K. Kulkarni
C.
Stakeholders Relationship Committee (earlier
known as Share Transfer and Shareholders/
Investors Grievance Committee)
The Companys Stakeholders Relationship Committee (earlier
known as Share Transfer and Shareholders/Investors Grievance
Committee) functions under the Chairmanship of Mr.A. K.
Nanda, Non-Independent Non-Executive Director. Mr.Anand
G. Mahindra, Mr.Bharat Doshi and Mr.R. K. Kulkarni are also
Members of the Committee. Mr.Narayan Shankar, Company
Secretary is the Compliance Officer of the Company.
The Committee meets, as and when required to, inter alia,
deal with matters relating to transfer/transmission of shares
and monitor redressal of the grievances of the security holders
of the Company relating to transfers, non-receipt of Balance
Sheet, non-receipt of dividends declared, etc. With a view to
expedite the process of share transfers, necessary authority
has been delegated to the Committee to approve transfers
of more than 10,000 Ordinary (Equity) Shares per transfer as
well as approve transfer of Ordinary (Equity) Shares where the
transferee holds 2,00,000 or more Ordinary (Equity) Shares in
your Company. The Committee is also authorised to approve
request for issue of duplicate share certificates.
The Committee comprises of majority of Independent Directors

including its Chairman.
As per section 178(7) of the Companies Act, 2013, the

Chairperson of the Committee or, in his absence, any other
Member of the Committee authorised by him in this behalf
shall attend the General Meetings of the Company.
Mr.Narayanan Vaghul is the Chairman of the Committee.

Mr.Nadir B. Godrej, Mr.M. M. Murugappan and Mr.R. K.
Kulkarni are the other Members of the Committee. Mr.Anand
G. Mahindra and Mr.Rajeev Dubey, President (Group HR,
Corporate Services & After-Market) are permanent invitees to
the Committee.
The Committee met two times during the year. Both the
Meetings were well attended by its Members. During the
year, 25 complaints were received from the Shareholders, all
of which have been attended to/resolved to date. As of date,
there are no pending share transfers pertaining to the year
under review.
66
D. Corporate Social Responsibility Committee

The Corporate Social Responsibility (CSR) Committee is a
Committee constituted by the Board with powers, inter alia,
to make donations/contributions to any Charitable and/or CSR
projects or programs to be implemented directly or through an
executing agency or other Not for Profit Agency with minimum
three years proven track record or through a Corporate
Foundation or other reputed Non-Governmental Organisation
up to an amount of two percent of the Companys average net
profits during the three immediately preceding Financial Years
in pursuance of its CSR Policy for the Companys Corporate
Social Responsibility Initiatives.
Further, pursuant to Clause 55 of the Listing Agreement with
the Stock Exchanges, the scope of functions of the Committee
has been enlarged, inter alia, to formulate and recommend to
the Board for its approval and implementation, the Business
Responsibility (BR) Policy(ies) of the Company, undertake
periodical assessment of the Companys BR performance, review
the draft Business Responsibility Report and recommend the
same to the Board for its approval and inclusion in the Annual
Report of the Company.
Keeping in mind the provisions of the Companies Act, 2013
(the New Act), the role of this Committee also includes
recommendation of the amount of expenditure to be incurred
on the CSR activities as enumerated in Schedule VII of the
New Act and also referred to in the amended CSR Policy of
the Company as also to monitor the CSR Policy from time to
time, etc.
The CSR Policy for the Company as duly amended is displayed
on the Companys website http://www.mahindra.com
Mr.Anand G. Mahindra is the Chairman of the Committee.
Dr. Pawan Goenka, Mr.Bharat Doshi, Mr.A. K. Nanda, Mr.R.
K. Kulkarni and Dr.Vishakha N. Desai are the other Members
of the Committee out of which two Directors are Independent.
The Committee met thrice during the year. All the Meetings
were well attended by its Members.
E. Research & Development Committee

(a voluntary initiative of the Company)
The Research & Development (R&D) Committee, which was
constituted by the Board in 1998, provides direction on the
R&D mission and strategy and key R&D and technology issues.
The Committee also reviews and makes recommendations on
the skills and competencies required and the structure and

the process needed to ensure that the R&D initiatives result
in products that are in keeping with the business needs.
Mr.M. M. Murugappan is the Chairman of the Committee.
Mr.Anand G. Mahindra, Mr.Bharat Doshi, Dr.Pawan Goenka
and Mr.Nadir B. Godrej are the other Members of the
Committee. The Committee met twice during the year. All the
Meetings were well attended by its Members.
F. Strategic Investment Committee

The Strategic Investment Committee is constituted by the
Board with powers, inter alia, to take up for evaluation and
scrutinise significant investments/funding including but not
limited to business acquisitions, reviewing and monitoring
existing investments in Subsidiaries, Joint Ventures and other
Group companies, overseeing and reviewing performance of
various subsidiaries and make necessary recommendations
to the Board from time to time including disinvestments.
Mr.Bharat Doshi, Mr.Deepak S. Parekh, Mr.Nadir B. Godrej,
Mr.Vikram Singh Mehta and Mr.Anupam Puri are the other
Members of the Committee. The Committee met five times
during the year. All the Meetings were well attended by
its Members.
G. Loans & Investment Committee

The Loans & Investment Committee approves of making of
loans and investment, disinvestment, borrowing moneys and
related aspects of fund management in accordance with the
authority granted and the parameters prescribed by the Board.
Mr.Bharat Doshi, Mr.A. K. Nanda, Mr.R. K. Kulkarni and
Mr.Vikram Singh Mehta are the other Members of the
Committee. The Committee met seven times during the year.
All the Meetings were well attended by its Members.
V. Subsidiary Companies
Clause 49 of the Listing Agreement defines a material
non-listed Indian subsidiary as an unlisted subsidiary,
incorporated in India, whose turnover or net worth (i.e. paidup capital and free reserves) exceeds 20% of the consolidated
turnover or net worth respectively, of the listed holding
company and its subsidiaries in the immediately preceding
accounting year.
67
Under this definition, the Company did not have any material
non-listed Indian subsidiary during the year under review.
The Subsidiaries of the Company function independently, with
an adequately empowered Board of Directors and adequate
resources. For more effective governance, the Minutes of
Board Meetings of Subsidiaries of the Company are placed
before the Board of Directors of the Company for their review
at every quarterly Meeting.
VI. Disclosures
A. Disclosure of transactions with Related Parties
During the Financial Year 2013-14, there were no materially
significant transactions or arrangements entered into between
the Company and its Promoters, Directors or the Management,
Subsidiaries or Relatives, etc. that may have potential conflict
with the interests of the Company at large. Further, details of
related party transactions are presented in Note Number 42
to Annual Accounts in the Annual Report.
B.
Disclosure of Accounting Treatment
preparation of Financial Statements
in
Your Company has followed the Accounting Standards laid

down by The Companies (Accounting Standards) Rules, 2006,
as amended from time to time, in preparation of its financial
statements.
C. Code for Prevention of Insider Trading Practices

The Company has instituted a comprehensive Code of Conduct
for Prevention of Insider Trading for its designated employees,
in compliance with Securities and Exchange Board of India
(Prohibition of Insider Trading) Regulations, 1992, as amended
from time to time. The Code lays down Guidelines, which
advise them on procedures to be followed and disclosures
to be made, while dealing with shares of the Company and
cautions them of the consequences of violations.
VII. Shareholder Information

1. 68th Annual General Meeting
Date : 8th August, 2014

Time : 3:30 p.m.
Venue :
Birla Matushri Sabhagar, 19, Sir Vithaldas
Thackersey Marg (New Marine Lines),
Mumbai - 400 020.
2. Date of Book Closure
Book Closure for Dividend will be from 19th July, 2014 to
8th August, 2014, both days inclusive.
68
3. Date of Dividend Payment

The Dividend would be paid/despatched on or after
9th August, 2014.
4. Financial Year of the Company
The financial year covers the period from 1st April to 31st
March.

Financial Reporting for:
Quarter ending
30 th June, 2014 - Second week of August, 2014

Half-year ending
30 th September, 2014 - Second week of November, 2014

Quarter ending
31st December, 2014 - Second week of February, 2015
Year ending
31st March, 2015 - End May, 2015

Note: The above dates are indicative.
5. Registered Office

Mahindra & Mahindra Limited


Mumbai - 400 001.
6. Listing of Ordinary (Equity) Shares and Debentures on
Stock Exchanges

Y
our Companys Shares are listed on BSE Limited ("BSE")
and National Stock Exchange of India Limited ("NSE"). The
Global Depository Receipts ("GDRs") of your Company are
listed on the Luxembourg Stock Exchange and are also
admitted for trading on International Order Book ("IOB")
of the London Stock Exchange. The requisite listing fees
have been paid in full to all these Stock Exchanges.
The Company has issued privately placed Non-Convertible
Debentures of Rs. 500 crores which are listed on the Debt
Segment of BSE.
7A. Stock Codes
I Equity/GDRs

1. BSE
: 500520
2. NSE
: M&M
3.
Demat International
Securities Identification
Number (ISIN) for
Ordinary (Equity) Shares : INE101A01026
4.
GDRs, Luxembourg
Stock Exchange (ISIN) : USY541641194

5. London Stock Exchange : MHID
II Debentures

1. BSE Scrip Code
: 949342

Scrip ID
: 955MML2063
2.
Demat International
Securities Identification
Number (ISIN)
: INE101A08070
7B. Corporate Identity Number
: L65990MH1945PLC004558
8. Stock Performance
The performance of the Companys shares relative to the BSE Sensitive Index is given in the chart below:
M&M on BSE
BSE Sensex
25,000
1200
M&M ON BSE
1000
20,000
800
15,000
600
10,000
400
BSE SENSEX
5,000
200
0
Apr 13
May 13
Jun 13
Jul 13
Aug 13
Sep 13
Oct 13
Nov 13
Dec 13 Jan 14
Feb 14
Mar 14
Closing Price on Last Trading day of the Month
The performance of the Companys shares relative to the NSE S&P CNX Nifty Index is given in the chart below:
M&M on NSE
NSE Nifty
8000
1200
7000
1000
800
5000
600
4000
NSE NIFTY
6000
M&M ON NSE
3000
400
2000
200
1000
0
0
Apr 13
May 13
Jun 13
Jul 13
Aug 13
Sep 13
Oct 13
Nov 13
Dec 13 Jan 14
Feb 14
Mar 14
Closing Price on Last Trading day of the Month
69
9. Stock Price Data

Month
Equity Shares
BSE Limited
GDRs
National Stock Exchange of India

Limited
Luxembourg Stock Exchange
HIGH
LOW
HIGH
LOW
HIGH
LOW
Rs.
Rs.
Rs.
Rs.
US$
US$
April, 2013
930.70
809.00
931.75
808.95
17.17
14.89
May, 2013
1026.45
910.10
1026.00
912.40
17.99
17.09
June, 2013
999.90
907.40
1000.75
904.00
17.42
15.02
July, 2013
992.50
862.80
994.30
862.40
16.52
14.69
August, 2013
922.50
741.50
923.15
740.15
14.41
11.29
September, 2013
891.40
749.00
892.00
747.20
14.05
11.37
October, 2013
908.00
822.25
907.80
821.35
14.68
13.33
November, 2013
965.00
860.25
965.10
840.00
15.37
13.75
December, 2013
979.00
925.10
979.10
923.00
15.82
15.03
January, 2014
958.75
851.00
959.00
849.95
15.02
13.75
February, 2014
975.00
847.00
978.90
846.60
15.77
13.66
March, 2014
1054.00
940.70
1054.90
940.20
16.79
15.34
10. Registrar and Transfer Agent:
11. Share Transfer System
Sharepro Services (India) Private Limited

Unit: Mahindra & Mahindra Limited

13AB, Samhita Warehousing Complex,
2nd Floor, Sakinaka Telephone Exchange Lane,
Off Andheri Kurla Road, Sakinaka, Andheri (East),
Mumbai - 400 072.
Tel. No. : +91-22-67720400/300
Fax No. : +91-22-28591568
Email
: sharepro@shareproservices.com

The Registrar and Transfer Agents also have an
office at:


912, Raheja Centre, Free Press Journal Road,
Nariman Point, Mumbai - 400 021.
Tel. No. : +91-22-22825163

Fax No. : +91-22-22825484
70

Trading in Ordinary (Equity) Shares of the Company
through recognised Stock Exchanges is permitted only in
dematerialised form.
Shares sent for transfer in physical form are registered and

returned within a period of fifteen days from the date
of receipt of the documents, provided the documents are
valid and complete in all respects. With a view to expedite
the process of share transfers, Mr.V S Parthasarathy, CFO,
Group CIO & Executive Vice President Group M&A or
Mr.Zhooben Bhiwandiwala, Executive Vice President
Group Legal, Managing Partner Mahindra Partners or
Mr.S. Durgashankar, Executive Vice President M&A and
Secretarial or Mr.Narayan Shankar, Company Secretary of
the Company have been severally authorised to approve
the transfers of not more than 10,000 Ordinary (Equity)
Shares per transfer, provided the transferee does not hold
2,00,000 or more Ordinary (Equity) Shares in the Company.
The Stakeholders Relationship Committee meets as and

when required to consider the other transfer proposals
and attend to Shareholder grievances.
During the year under review, the nomenclature of the
Share Transfer and Shareholders/Investors Grievance
Committee was changed to Stakeholders Relationship
Committee.
12. Distribution of Shareholding as on 31st March, 2014:
Number
of
Shares held
Number
of
Shareholders
Number
of Shares
held
% of
Shareholding
16. Address for correspondence

Shareholders may correspond with the Registrar and
Transfer Agents at:


Unit : Mahindra & Mahindra Limited

13AB, Samhita Warehousing Complex,
2nd Floor, Sakinaka Telephone Exchange Lane,

Off Andheri Kurla Road,

Sakinaka, Andheri (East),

Mumbai 400 072.
1,57,719
1,61,23,401
2.62

Tel. No. : +91-22-67720400/300
Fax No. : +91-22-28591568

Email : sharepro@shareproservices.com
1001 to 2000
4,324
62,68,742
1.02
2001 to 10000
3,825
1,56,14,020
2.54
10001 to 20000
433
59,45,302
0.96
20001 and above
775
57,19,40,919
92.86
1,67,076
61,58,92,384
100.00
1 to 1000
Total
13. Dematerialisation of Shares

98.98% of the paid-up Equity Share Capital is held in
dematerialised form with National Securities Depository
Limited and Central Depository Services (India) Limited as
on 31st March, 2014. The market lot of the Share of your
Company is one Share, as the trading in the Equity Share
of your Company is permitted only in dematerialised form.
Non-Promoters holding is around 75% and the stock is
highly liquid.
14.
Outstanding GDRs/ADRs/Warrants or any Convertible
Instruments, Conversion date and likely impact on equity
3,07,31,375 GDRs were outstanding as on 31st March, 2014.
Since the underlying Ordinary (Equity) Shares represented
by GDRs have been allotted in full, the outstanding GDRs
have no impact on the Equity of the Company. There
are no other convertible instruments outstanding as on
31st March, 2014.
15. Plant Locations

Your Companys manufacturing facilities are located at
Kandivali, Nashik, Igatpuri, Nagpur, Zaheerabad, Jaipur,
Rudrapur, Haridwar, Chakan and Mohali.
for all matters relating to transfer/dematerialisation of

shares, payment of dividend and any other query relating
to Equity Shares of your Company.
The Registrar and Transfer Agents also have an office at:


912, Raheja Centre,
Free Press Journal Road,
Nariman Point,
Mumbai 400 021
Tel. No. : +91-22-22881568

Fax No. : +91-22-22825484
Your Company has also designated investors@mahindra.com

as an exclusive email ID for Investors for the purpose of
registering complaints and the same has been displayed
on the Companys website.
Shareholders would have to correspond with the respective
Depository Participants for Shares held in demateralised
form for transfer/transmission of Shares, change of
Address, change in Bank details, etc.
For all investor related matters, the Company Secretary &
Compliance Officer can also be contacted at:
Mahindra Towers,
5th Floor, Dr.G. M. Bhosale Marg,

Worli, Mumbai 400 018.

Tel. No. : +91-22-24975074

Fax No. : +91-22-24900833
Email : investors@mahindra.com

Your Company can also be visited at its website:
http://www.mahindra.com
71
VIII. Other Disclosures

1. Details of General Meetings and Special Resolutions passed

Annual General Meetings ("AGM") held during the past 3 years and the Special Resolutions passed therein:
Year
Date
Time
Special Resolutions passed
2011
8 August, 2011
3.30 p.m.
Revision in the scale of salary payable to Mr.Anand G. Mahindra as the Managing Director
of the Company designated as Vice - Chairman and Managing Director and revision in
the scale of salary and basic salary payable to Mr.Bharat Doshi as the Executive Director
designated as Executive Director & Group Chief Financial Officer with effect from
1st August, 2010 for the remainder of their respective terms of Office.
2012
8th August, 2012
3.30 p.m.
1.
Re-appointment of Mr.Anand G. Mahindra as the Managing Director of the

Company designated as Vice-Chairman & Managing Director for a period of 5 years
with effect from 4th April, 2012 to 3rd April, 2017.
2.
Re-appointment of Mr.Bharat Doshi as the Executive Director of the Company

designated as Executive Director & Group Chief Financial Officer with effect from
28th August, 2012 to 31st March, 2015.
3.
Amendment of the Articles of Association of the Company to provide for Video

Conference facility and/or other permissible electronic or virtual facilities for
communication to enable the Shareholders of the Company to participate in General
Meetings or other Meetings of the Company and Committees thereof through
Video Conference facility and/or other permissible electronic or virtual facilities
for communication, provided further that a Director participating in a Meeting
through Video Conference facility and/or any other permissible electronic mode of
communication shall be counted for the purpose of quorum and to serve documents
on any Member by any electronic mode of communication in such manner as may
be permitted by any law.
2013
th
13th August 2013
3.30 p.m.
No Special Resolution was passed.

The above Meetings were held at Birla Matushri Sabhagar, 19, Sir Vithaldas Thackersey Marg (New Marine Lines),
Mumbai - 400 020.
No Extraordinary General Meeting was held during the past 3 years. No Special Resolution(s) requiring a Postal Ballot was
passed last year or is being proposed at the ensuing Annual General Meeting.
2. Details of non-compliance etc.
Your Company has complied with all the requirements of
regulatory authorities. During the last three years, there
were no instances of non-compliance by the Company and
no penalty or strictures were imposed on the Company by
the Stock Exchanges or SEBI or any statutory authority, on
any matter related to the capital markets.
Presentations are also made to international and national

institutional investors and analysts which are also put up
on the website of the Company.
4. Management Discussion and Analysis Report
Management Discussion and Analysis Report forms part of
this Annual Report.
3. Means of Communication
5. Compliance with Mandatory requirements
The quarterly, half-yearly and yearly results are published

in Business Standard and Sakal which are national and
local dailies respectively. These are not sent individually to
the Shareholders.

Your Company has complied with all the mandatory
requirements of Clause 49 of the Listing Agreement
relating to Corporate Governance.

The Companys results and official news releases
are
displayed
on
the
Companys
website
http://www.mahindra.com
72
6. Compliance with Non-mandatory requirements

a.
Governance,
Nomination
and
Remuneration
Committee
(earlier
known
as
Governance,
Remuneration and Nomination Committee)

Your Company has set up the Governance,
Nomination and Remuneration Committee (earlier
known as Governance, Remuneration and Nomination
Committee) long before application of Clause 49 of
the Listing Agreement.

b. Audit Qualifications

During the year under review, there is no audit
qualification in your Companys standalone financial
statements. Your Company continues to adopt best
practices to ensure regime of unqualified financial
statements.

c. Whistle Blower Policy

The Company promotes ethical behaviour in all its
business activities and has put in place a mechanism
wherein the Employees are free to report illegal
or unethical behaviour, actual or suspected fraud
or violation of the Companys Codes of Conduct
or Corporate Governance Policies or any improper
activity to the Chairman of the Audit Committee of the
Company or Chairman of the Company or Corporate
Governance Cell. The Whistle Blower Policy has been
appropriately communicated within the Company.
Under the Whistle Blower Policy, the confidentiality
of those reporting violation(s) is protected and
they are not subject to any discriminatory practices.
No personnel has been denied access to the Audit
Committee.
Further, the Whistle Blower Policy has been amended
to make it applicable to both the Directors and
the Employees of the Company alike, to facilitate
implementation of Vigil Mechanism. The Policy
empowers the Chief Ethics Officer/Chairman of

the Audit Committee/Chairman of the Company/
Corporate Governance Cell to investigate any protected
disclosure including matters concerning financials/
accounting, etc. received from the Employees under
this policy.
Whistle Blower Policy of the Company is displayed on
the Company's website http://www.mahindra.com
Your Company has not adopted the other non-mandatory
requirements as specified in Annexure I D of Clause 49.
7.
Compliance with the Corporate Governance-Voluntary
Guidelines, 2009

In December, 2009 the Government of India, Ministry
of Corporate Affairs (MCA) had issued Corporate
Governance Voluntary Guidelines, 2009 (the Guidelines).
MCA has clarified that the Guidelines were prepared and
disseminated for consideration and adoption by Corporates
and may be voluntarily adopted by public companies with
the objective of enhancing not only the economic value
of the enterprise but also the value for every stakeholder
who has contributed in the success of the enterprise and
set a global benchmark for good Corporate Governance.

Your Company has been a strong believer in good
Corporate Governance and has been adopting the best
practices that have evolved over the last two decades.

Your Company is in substantial compliance with the
Guidelines and it will always be the Companys endeavour
to attain the best practices in Corporate Governance.
Mumbai, 30 th May, 2014.
DECLARATION BY THE MANAGING DIRECTOR UNDER CLAUSE 49

OF THE LISTING AGREEMENT
To
The Members of Mahindra & Mahindra Limited
I, Anand G. Mahindra, Chairman & Managing Director of Mahindra & Mahindra Limited declare that all the Members of the
Board of Directors and Senior Management Personnel have affirmed compliance with the Code of Conduct for the year ended
31st March, 2014.

Anand G. Mahindra
30th May, 2014

73
CERTIFICATE
To
The Members of
We have examined the compliance of conditions of Corporate Governance by Mahindra & Mahindra Limited ("the Company") for
the year ended 31st March, 2014, as stipulated in Clause 49 of the Listing Agreement of the said Company with stock exchanges
in India.
The compliance of conditions of Corporate Governance is the responsibility of the management. Our examination was limited to
procedures and implementation thereof, adopted by the Company for ensuring the compliance of the conditions of Corporate
Governance. It is neither an audit nor an expression of opinion on the financial statements of the Company.
In our opinion and to the best of our information and according to the explanations given to us, we certify that the Company has
complied with the conditions of Corporate Governance as stipulated in the above mentioned Listing Agreement.
We state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or effectiveness
with which the management has conducted the affairs of the Company.
For Deloitte Haskins & Sells

Chartered Accountants
(Firm Registration No. 117364W)
Shyamak R Tata
Partner
Membership Number: 38320
Mumbai, May 30, 2014
74
Business
Responsibility
Report
for the year 2013-14
(Pursuant to Clause 55 of the Listing Agreement)

Section A: General Information about the Company
1. Corporate Identity Number : L65990MH1945PLC004558
(CIN) of the Company
2. Name of the Company
: Mahindra & Mahindra

Limited
3. Registered address
: Gateway Building,
Apollo Bunder,
Mumbai - 400 001
4. Website
: www.mahindra.com
5. E-mail id
: investors@mahindra.com
6. Financial Year reported
: 01.04.2013 to 31.03.2014
7.
Sector(s) that the Company is engaged in (industrial
activity code-wise):
Description
Industrial Activity Code

Group
Class
Sub-class
291
2910
29101, 29102, 29103,

29104, 29109
Farm Equipment 282
2821
28211, 28212
Truck and Bus
2824
28243
Automotive
282
10. Markets served by the Company Local/State/National/

International: All
Section B: Financial Details of the Company

1. Paid up Capital (INR)
: 307.95 crores
2. Total Turnover (INR)
: 41,226.49 crores
3. Total profit after taxes (INR) : 3,758.35 crores

4. Total Spending on
Corporate Social
Responsibility (CSR) as
percentage of profit after
tax (%)
5. List of activities in which
expenditure in 4 above has
been incurred
: 0.87%
a. Education
b. Health
c. Green Cover
d. Relief and
Rehabilitation
Section C: Other Details

1.
Does the Company have any Subsidiary Company/
Companies?
8.
List three key products/services that the Company
manufactures/provides (as in balance sheet):

Yes. The Company has 120 subsidiary companies as on
31st March, 2014.
2. Do the Subsidiary Company/Companies participate in the

BR Initiatives of the parent company? If yes, then indicate
the number of such subsidiary company(s)
i.
Passenger Vehicles (Utility Vehicles, Multi Purpose
Vehicles and Cars)
ii. Commercial Vehicles

iii. Tractors
Total number of locations where business activity is

9.
undertaken by the Company:

i.
Number of International Locations: 1
ii. Number of National Locations: 44

Yes. Every year the Company releases a Sustainability
Report as per the GRI framework which is externally
assured. The Company has a Code of Conduct for Employees
and Directors as well as a set of Governance Policies. This
Code is followed by the Subsidiary Companies also with
modifications depending on the business requirement of
77
the entity. The scope of this report is defined each year.

For the year 2013-14, 20 subsidiaries have been included
in the scope of Sustainability Report viz. Mahindra &
Mahindra Financial Services Ltd. (MMFSL), Mahindra
First Choice Services Ltd. (MFCSL), Mahindra Gears and
Transmissions Private Limited, Mahindra Ugine Steel
Company Limited, Mahindra Holidays and Resorts India
Ltd. (MHRIL), Mahindra Lifespace Developers Ltd. (MLDL),
Mahindra Insurance Brokers Ltd., Mahindra Intertrade
Ltd. (MIL), Mahindra Logistics Ltd. (MLL), Mahindra
Reva Electric Vehicles Pvt. Ltd. (MREVA), Mahindra Rural
Housing Finance Limited, Mahindra Steel Service Centre
Limited, Mahindra Two Wheelers Ltd. (MTWL), Mahindra
Vehicle Manufacturers Ltd. (MVML), Mahindra World City
Developers Ltd. (MWCDL), Mahindra World City (Jaipur)
Ltd. (MWCJL), Mahindra Shubhlabh Services Limited,
Mahindra EPC Services Private Limited, EPC Industries
Limited and Mahindra Sanyo Special Steel Pvt. Ltd.
S. Particulars
No.
1.
DIN Number 00104817

(If applicable)
2.
Name
Mr. Rajeev Dubey
3.
Designation
President (Group HR, Corporate

Services & After-Market)
4. Telephone
Number
5.
e-mail ID
2.
Principle-wise
(Reply in Y/N)
(as
+9122 24975192
+9122 24901441 Extn. 5594
DUBEY.RAJEEV@mahindra.com
per
NVGs)
BR
Policy/policies
the BR initiatives of the Company? If yes, then indicate

the percentage of such entity/entities? [Less than 30%,
P1: Businesses should conduct and govern themselves

with Ethics, Transparency and Accountability.
P2: Businesses should provide goods and services that are

safe and contribute to sustainability throughout their
life cycle.
P3: Businesses should promote the wellbeing of all

employees.
P4: Businesses should respect the interests of, and

be responsive towards all stakeholders, especially
those who are disadvantaged, vulnerable and
marginalized.
P5: Businesses should respect and promote human rights.
P6: Business should respect, protect, and make efforts to

restore the environment.
P7: Businesses, when engaged in influencing public

and regulatory policy, should do so in a responsible
manner.
P8: Businesses should support inclusive growth and

equitable development.
P9: Businesses should engage with and provide value

to their customers and consumers in a responsible
manner.
etc.) that the Company does business with, participate in
30-60%, More than 60%]

T
he Company has longstanding relationships with its
dealers and suppliers. In 2013-14 a large number of dealers
and suppliers were covered in the sustainability awareness
programs conducted by the business. Many dealers and
suppliers have instituted sustainability programs at their
locations post the awareness building sessions. A roadmap
to cover key dealers and suppliers is in place and is being
implemented. As on date less than 30% of the dealers and
suppliers of the Company are engaged in the Companys
BR activities.
Section D: BR Information
1. Details of Director/Directors responsible for BR
a.
Details of the Director/Director responsible for
implementation of the BR policy/policies

DIN
78
Details
The Business Responsibility Policy (BR Policy) addressing

the following 9 principles as per the National Voluntary
Guidelines on Social, Environmental and Economic
Responsibilities of Business (NVGs), duly approved by
the Board, is in place. This policy is operationalised and
supported by various other policies, guidelines and
manuals.
3. Do any other entity/entities (e.g. suppliers, distributors
b.
Details of the BR Head
Number
: 00254502
Name
: Dr. Pawan Goenka
Designation
: Executive Director and

President Automotive and
Farm Equipment Sectors
P1:
Sr.
No.
Questions
1.
Do you have a policy/policies for....
P2:
P3:
P4:
Ethics
Product
Wellbeing Responsiveness
and
Responsibility
of
to
employees Stakeholders
Transparency
P5:
P6:
P7:
P8:
P9:
Respect
Human
Rights
Environmental
Responsibility
Public
policy
advocacy
Support
inclusive
growth
Engagement
with
Customers
Note 1
2.
Has the policy being formulated in

consultation with the relevant stakeholders?
Does the policy conform to any national/

international standards? If yes, specify?
(50 words)
4.
Has the policy being approved by the Board?

If yes, has it been signed by MD/owner/
CEO/appropriate Board Director?
5.
Does the Company have a specified

committee of the Board/ Director/Official to
oversee the implementation of the policy?
6.
Indicate the link for the policy to be viewed

online?
3.
Note 2
NA
Note 3
Note 4
Note 4
Note 4
Note 4
Note 4
Note 4
Note 4
Note 4
Note 4
7.
Has the policy been formally communicated

to all relevant internal and external
stakeholders?
8.
Does the Company have in-house structure

to implement the policy/policies.
9.
Does the Company have a grievance redressal

mechanism related to the policy/policies
to address stakeholders grievances related
to the policy/policies?
NA
Has the Company carried out independent

audit/evaluation of the working of this policy
by an internal or external agency?
10.
Note 5
Note 3
Note 1 The Company complies with consumers awareness through appropriate product labelling and operator manual & instructions which
ensure safe usage by the customer. However, Companys current control is limited till warranty period. The Company is in the process of
addressing this by appropriate communication to all value chain members for their responsibilities.
Note 2 While there is no formal consultation with all stakeholders, the relevant policies have evolved over a period of time by taking inputs
from concerned internal stakeholders.
Note 3 This question is not applicable for influencing public and regulatory policy.
Note 4 It has been Companys practice to upload all policies on the intranet site for the information and implementation by the internal
stakeholders. The Code of Conduct for Directors, the Code of Conduct for Senior management and Employees, Business Responsibility
Policy and CSR Policy is available on the website http://www.mahindra.com/Investors/Mahindra-and-Mahindra/Governance and http://
www.mahindra.com/How-We-Help
Note 5 The Company has a Whistle Blower Policy to address all grievances including those related to human rights. The Corporate Governance
Cell deals with all governance issues related to Company.
79
3. Governance Related to BR

Indicate the frequency with which the Board of

Directors, Committee of the Board or CEO to assess
the BR performance of the Company. Within 3 months,
3-6 months, Annually, More than 1 year:
The CSR Committee of the Board meets at an interval

of every 6 months to assess the BR performance. Other
supporting councils/cells viz. Group Sustainability
Council, Group CSR Council, Central Safety Council and
Corporate Governance Cell meet every 3 months.

oes the Company publish a BR or a Sustainability

D
Report? What is the hyperlink for viewing this report?
How frequently it is published?

Mahindra Group Sustainability Report as per the GRI
framework is published annually. All Sustainability
Reports from 2007-08 till 2012-13 are GRI compliant
and are accessible on the Company website at the
http://www.mahindra.com/How-We-Help/
hyperlink
Environment/Sustainability
of various statutory provisions as also about his allegedly

unjust termination from the services of the Company. The
Company has replied to all his allegations.
The Company has different mechanisms for receiving and
dealing with complaints from various stakeholders like
Investors, Customers, Employees, and Suppliers etc.
Principle 2: Businesses should provide goods and services that
are safe and contribute to sustainability throughout their
life cycle
1. List up to 3 of your products or services whose design has
incorporated social or environmental concerns, risks and/
or opportunities.
Product
1. Passenger Vehicles A Stop/start technology for better

(UV/ MPV/ Cars)
Fuel efficiency & CO2 reduction was
introduced in all pick up models.

The Sustainability Report for 2013-14 is under
preparation and will be uploaded on the website of the
Company in due course of time.
Low
friction
lubricants
are
introduced on all UV models and
selected pick up models to get
Fuel Efficiency benefit by 34%
& enhanced oil drain period thus
reducing the raw material use
and reducing the use of lubricants
during life span of vehicle.
Section E: Principle-wise performance

Principle 1: Businesses should conduct and govern themselves
with Ethics, Transparency and Accountability
1.
Does the policy relating to ethics, bribery and corruption
cover only the Company? Yes/ No. Does it extend to
the Group/Joint Ventures/Suppliers/Contractors/NGOs
Others?
The Company has defined Code of Conduct for Directors
as well as the Senior Management and Employees of the
Company that covers issues, inter alia, related to ethics,
bribery, etc. The Code of Conduct for Senior Management
and Employees, inter alia, covers all dealings with Suppliers,
Customers and other business partners including Joint
Ventures, and other stakeholders.
Engine downsizing and two stage

turbo charging is incorporated on
the newly launched small SUV to
enhance fuel efficiency.
2. Commercial
Vehicles
Fuel
Smart
technology
was
introduced in small commercial
vehicle segment to reduce fuel
consumption and emissions. Small
transport vehicles with enhanced
load
carrying
capacity
for
encouraging self-employment and
better livelihood for rural as well as
semi-urban people.
3. Low Cost Tractors

(Yuvraj)
Specially designed small tractors

with low horse power, low weight
and high fuel efficiency have been
introduced for small & marginalized
farmers.
How many stakeholder complaints have been received

2.
in the past financial year and what percentage was
satisfactorily resolved by the management? If so, provide
details thereof, in about 50 words or so.
During the reporting year, 25 complaints were received
from the Shareholders, all of which were attended to/
resolved till date. An individual who is a shareholder
and former employee whose services with the
Company were terminated in the year 1991 on proven
misconduct frequently writes to the Company, alleging
mismanagement of the affairs of the Company, violations
80
Social & environmental benefits
2. For each such product, provide the following details in

respect of resource use (energy, water, raw material etc.)
per unit of product(optional):

i.
Reduction during sourcing/production/distribution
achieved since the previous year throughout the
value chain?

For the above mentioned products, there is no
explicit tracking mechanism in respect of resource
use. However, the resource use for entire portfolio is
tracked and monitored. Since the products portfolio
is distributed across various manufacturing locations
of the Company, the resource use is monitored per
unit of equivalent vehicle or equivalent tractor
manufactured. The performance for current and
previous year on Specific Energy Consumption, GHG
Emissions and Specific Water Consumption during
production is appended below, which is as reported
in the Group Sustainability Reports for 2012-13 and
2013-14:
Resource Use
Divisions
Automotive
Specific Energy
Consumption
Farm Division
(Including
Swaraj)
Automotive
Green House Gas

Emissions
(Scope I and II)
Farm Division
(Including
Swaraj)
Automotive
Specific Water
Consumption
Farm Division
(Including
Swaraj)
Unit of
Measurement
GJ / Equivalent
Vehicles
GJ / Equivalent
Tractors
tCO2 / Equivalent
Vehicles
tCO2 / Equivalent
Tractors
KL / Equivalent
Vehicles
KL / Equivalent
Tractors
Current
Year
2013-14
Previous
Year
2012-13
2.290
2.524
1.374
1.762
0.361
0.377
0.221
0.269
2.441
2.698
1.603
1.815
ii. Reduction during usage by consumers (energy, water)

has been achieved since the previous year?

Due to constant innovations and focus on fuel
efficiency, there would be a reduction of energy use
by consumers. However, tracking of such reduction is
not possible as it is highly dependent on individual
customers driving habits.
3.
Does the Company have procedures in place for
sustainable sourcing (including transportation)?

i. If yes, what percentage of your inputs was sourced

sustainably? Also, provide details thereof, in about
50 words or so.
The Company has been working to enhance the degree

of sustainability associated with its sourcing practices.
This includes setting up of vendor parks at its new
plants, sourcing from tightly knit clusters, optimizing
logistics to reduce fuel consumption, emissions and
carbon footprint, re-working packaging to minimize
waste and maximize re-use. The Sustainability road
map of the Company covers these areas and the
Company takes steps to ensure that its sourcing
methods are sustainable. Almost the entire sourcing
work is done from the country with a very small
percentage of input being procured from overseas.
The Company has Green Supply Chain Management
Policy, which has been shared with all suppliers,
under which, the Company is committed to improve
the awareness with regard to legal compliances,
enhance eco-efficiencies, employee health and
safety initiatives etc. at supplier end. This is done
by way of continuous engagement with suppliers
through supplier meets, business reviews, and
training sessions. To motivate the suppliers to
take the Sustainability agenda forward, good
practices are recognized, by institutionalizing
Pancharatna Sustainability Awards.
4.
Has the Company taken any steps to procure goods
and services from local & small producers, including
communities surrounding their place of work? If yes,
what steps have been taken to improve their capacity and
capability of local and small vendors?

Yes. The Company has a practice of purchasing goods
and services from local suppliers. The Company does
not have any small suppliers where the owner himself
or herself is a worker. The Company has multiple plants
spread across West, South and North of India. The major
factors influencing selection of Suppliers across these
regions are:

Capability, performance and on-time delivery.
ompliance
C
guidelines.
eadiness to participate in sustainable supply chain

R
management program.
Total cost.
on
environment,
health
&
safety
81
T
he purchasing group has a standard practice of sharing its
annual plans and next two years tentative plans with its
key suppliers through communication meets and supplier
business reviews.
These suppliers are provided with managerial and technical

assistance to train them on practices and procedures that
will ensure improvements in Productivity, Quality, Cost,
Delivery, Safety and Moral(PQCDSM). This is done by
initiatives like Supplier Business Capability Building(SBCB),
Mahindra Supplier Evaluation System(MSES), Supply Risk
Management(SRM), and technical support for special
processes during new product developments, Associate
Value Specialist Program, etc. The Company has special
focus on creating supplier parks near the plants for
e.g. Chakan supplier park and Zaheerabad supplier park.
The Company has a focus on buying from local suppliers
geographically nearest supplier plant.
5. Does the Company have a mechanism to recycle products
and waste? If yes what is the percentage of recycling of
products and waste (separately as <5%, 5-10%, >10%).
Also, provide details thereof, in about 50 words or so.

82
I t is the Companys ongoing endeavour to have a mechanism

to recycle its products and limit the waste arising out of
production of vehicles and tractors. The Company has
initiated well documented processes to ensure compliance
with the European Union Directive 2005/64/EC which is
now implemented to the vehicles exported to European
Union. The Companys objective is to restrict the amount
of waste produced from End of Life of vehicles (ELVs) and
increase the recovery and recycling of ELVs that arise. The
information on recyclable parts and manual for dismantling
is provided with export vehicles. The Company follows
the ISO 22628:2002 method, to calculate the recyclability
rate, the recoverability rate and reusability rate (RRR) of
the export vehicles. The Company has already certified
5 of its UV variants to comply European Union Directive
2005/64/EC norms on recyclability. The Company is actively
participating in the committee formed by Society of Indian
Automobile Manufacturers (SIAM) to frame process and
procedure for Product Recycling in India. At present, the
batteries used in vehicles are recycled in a structured
manner through the battery manufacturing companies in
India. Similarly other parts such as tyres, body components,
etc. are recycled in an unstructured manner through
licensed scrap dealers who either recover the material
used or cannibalize/refurbish the parts for reuse but it is
not tracked now.
Wastes arising out of processes for manufacturing these

products are segregated into Hazardous/Non-hazardous
and Wet/Dry for responsible disposal through authorized
agencies. Few initiatives introduced are the paint sludge,
which is hazardous waste, that is either recycled to make
primer for castings for rust prevention, or sent to cement
kilns as input fuel. Similarly, the packaging waste is
identified and steps are initiated to avoid use of wood and
corrugated boxes for transport. Though the waste generated
is tracked, reported and partially recycled, the Company
does not at present monitor percentage of recycling of
such waste.
Principle 3: Businesses should promote the wellbeing of all
employees
1. Please indicate the Total number of employees: 40163
2. Please indicate the Total number of employees hired on
temporary/contractual/casual basis: 20736
3.
Please indicate the Number of permanent women
employees: 623
4. Please indicate the Number of permanent employees with
disabilities: 47
5. Do you have an employee association that is recognized
by management? Yes
6.
What percentage of your permanent employees is
members of this recognized employee association?
(Total
Unionised
Permanent
Workmen/Total
97%
Permanent Workmen)
7. Please indicate the Number of complaints relating to child
labour, forced labor, involuntary labor, sexual harassment
in the last financial year and pending, as on the end of
the financial year.
Sr. Category
No.
1.
Child labour/forced
labour/involuntary labour
2.
Sexual harassment
3.
Discriminatory
employment
No. of
No. of
complaints
complaints
pending as
filed during
the financial on end of the
financial year
year
NIL
NIL
NIL
NIL
NIL
8.
What percentage of your under mentioned employees
were given safety & skill up-gradation training in the
last year?
Principle 5: Businesses should respect and promote human

rights
1. Does the policy of the Company on human rights cover
Permanent
Employees: 83.39%
only the Company or extend to the Group/Joint Ventures/
Permanent
Women Employees: 61.42%
Suppliers/Contractors/NGOs/Others?
Casual/Temporary/Contractual
Employees
Employees: 64.86%
with Disabilities: 44.68%
Principle 4: Businesses should respect the interests of, and be

responsive towards all stakeholders, especially those who are
disadvantaged, vulnerable and marginalized.

The Business Responsibility Policy covers the aspects on
Human Rights for the Company.
2. How many stakeholder complaints have been received in
the past financial year and what percent was satisfactorily
resolved by the management?

The Company has rolled out a Policy for prevention
1.
Has the Company mapped its internal and external
stakeholders? Yes/No
of sexual harassment in which it formalised a free and

fair enquiry process with clear timeline. The Company
has also constituted an internal complaints committee
Yes
2.
Out of the above, has the Company identified the
disadvantaged, vulnerable & marginalized stakeholders?
Yes
at major locations to which employees can write their

complaints.
There is an active and a well-defined four step Grievance
Redressal Machinery available at each plant for workmen
3.
Are there any special initiatives taken by the Company
through which all types of grievances are redressed.
to engage with the disadvantaged, vulnerable and
Additionally, Employee Satisfaction Survey for workmen is
marginalized stakeholders? If so, provide details thereof,
periodically carried out and all low scoring responses are
in about 50 words or so.
discussed in Focused Group Meetings and duly resolved.

The
for
Company
has
improving
designed
the
products
livelihood
and
specifically
encouraging
entrepreneurship amongst rural and semi-urban persons

through low cost products. Moreover, in the Farm
equipment business vertical, there is a conscious move
from Tractor manufacturing to Farm Tech Prosperity
where the various products and services are designed
to improve farm productivity especially among small &
marginalized
farmers.
The
Integrated
Watershed
Although there is no process to separately maintain

records for grievances related to Human Rights, the above
stated mechanism adequately addresses this issue. There
is a mechanism for all employees of Automotive and Farm
Equipment Sectors to voice their concerns to the Sector
President through a Reach-out mailbox which is addressed
with confidentiality. As on March31,2014, there were
no stakeholder complaints pending at any of Companys
plants/workplace.
Management projects at Damoh being implemented
Principle 6: Business should respect, protect, and make efforts
in Public-Private-Partnership(PPP) with the Govt. of
to restore the environment
Madhya Pradesh are in advanced stage of completion and
Does the policy related to Principle 6 cover only the

1.
two other projects have been initiated in the catchment

area of the Bhojtal, the main lake at Bhopal. More than
100 hectares of additional land has been brought under
cultivation and more than 500 farmers have experienced
10-15% productivity gains.
Company or extends to the Group/Joint Ventures/

Suppliers/Contractors/NGOs/others.
The Company has various policies related to environmental
protection.
The
Green
Supply
Chain
Management
Policy includes environment protection and covers suppliers.
In addition, the Company has also undertaken community
The Subsidiaries/ Joint Ventures have their own policies
development initiatives, the details of which are given in
which are in sync with the Companys environmental
answers under Principle 8.
policies.
83
2. Does the Company have strategies/initiatives to address

global environmental issues such as climate change,
global warming, etc? Y/N. If yes, please give hyperlink for
webpage etc.
Yes. These strategies and initiatives are elaborated in the
Companys GRI reports since 2007-08 which are available on
http://www.mahindra.com/How-We-Help/Environment/
Sustainability. All the targets set in the sustainability
roadmap developed in 2008-09, on the commitments
related to energy conservation, GHG reduction and Water
Conservation etc. are already achieved. These strategies
and initiatives are also aligned to the National Action Plan
on Climate Change.

The strategies and new initiatives continue year on
year. In the current reporting year various initiatives on
energy saving, water saving, waste reduction etc. were
implemented. An indicative list in this regard is appended
below and complete details will be available in the
Sustainability Report for the year 2013-14.

Energy Savings:
Change
of chillers in centralized air conditioning system

from Air Cooled to Water Cooled to improve energy
efficiency.

Reduction

Installation
Waste Reduction:

Use

Application

Recycling

Rationalisation
Water Saving:
Reduction
in withdrawal of water from source through

Rain Water Harvesting by collecting Roof and Surface
rain water.

Reuse
of treated water for process applications by

installing Reverse Osmosis (RO) system.

Recycling
treated water from ETP/STP for gardening

and flushing.
and
assess
potential
4.
Does the Company have any project related to Clean
Development Mechanism? If so, provide details thereof,
in about 50 words or so. Also, if Yes, whether any
environmental compliance report is filed?

Yes. The name of the CDM PoA 9731: Energy Efficiency

through Micro irrigation system India. The Registered
Program of Activities (PoA) aims at encouraging energy
efficiency through installation of efficient irrigation
system such as drip and sprinkler irrigation replacing the
conventional flood method of irrigation resulting in GHG
Emission reduction & Water Conservation. It was registered
in September 2013. No environmental compliance report is
filed as of now. For more details refer https://cdm.unfccc.
of gas carburising furnace to avoid heat losses.
of heat pumps technology to optimise or

eliminate use of electrical heaters.
of paper consumption through process

of reduce, reuse and recycle.
Yes, the Company has a mechanism to identify and assess

potential environmental risks across all locations.
of hot exhaust gases from chimney to preheat

combustion air used for oven applications.

Application
paint sludge as primer for casting for rust

prevention.
3.
Does the Company identify
environmental risks? Y/N

Use
of Electrostatic guns to reduce paint
of Energy Efficient Air Compressor and

Air Demand Controller for saving of energy.
Relining
of Alternate Material for storage and handling

of materials (e.g. Poly-Propylene boxes to replace
corrugated boxes, Mild Steel racks in place of wooden
boxes to store brake tubes, plastic crates in place of
gunny bags to store washer, speed nut).
wastage.
in emissions from furnaces by conversion

from Electrical Heating to Gas Heating.
84
int/ProgrammeOfActivities/poa_db/4Z28CN6S0DEB5F1PLIX
AY9W3GMRUOQ/view
5.
Has the Company undertaken any other initiatives on
clean technology, energy efficiency, renewable
energy, etc? Y/N. If yes, please give hyperlink for
web page etc.

Yes. Same as stated under point 2 above.
6.
Are the Emissions/Waste generated by the Company
within the permissible limits given by CPCB/SPCB for the
financial year being reported?
Yes
7. Number of show cause/legal notices received from CPCB/

SPCB which are pending (i.e. not resolved to satisfaction)
as on end of Financial Year.
NIL
Principle 7: Businesses, when engaged in influencing public and
regulatory policy, should do so in a responsible manner
1. Is your Company a member of any trade and chamber or
association? If Yes, Name only those major ones that your
business deals with:
Yes. The Company is a member of the following trade and
chambers of association in alphabetical order

a. The Associated Chambers of Commerce and Industry of

India (ASSOCHAM)
b. Bombay Chamber of Commerce and Industry (BCCI)
c. Confederation of Indian Industry (CII)
d. Employers Federation of India (EFI)
e. The Federation of Indian Chambers of Commerce and

Industry (FICCI)
f. Indian Merchants Chambers
g.
National Human Resource Development Network
(NHRDN)
h. Society of Indian Automobile Manufacturers (SIAM)
i.
The Energy and Resource Institute (TERI)
j.
Tractor Manufacturers Association (TMA)
2. Have you advocated/lobbied through above associations for

the advancement or improvement of public good? Yes/No;
if yes specify the broad areas (drop box: Governance and
Administration, Economic Reforms, Inclusive Development
Policies, Energy security, Water, Food Security, Sustainable
Business Principles, Others).
The Company participates as a stakeholder of SIAM and
TMA on policies related to automotive and tractor industry,
Sustainable Mobility and Farm Tech Prosperity, Economic
Reforms, Sustainable Business Principles (Sustainable Supply
Chain Management), Vehicle Recall policy. The Company
also contributes through Confederation of Indian Industry/
Bombay Chamber of Commerce and Industry, when views
are solicited on matters such as Securities Law, Corporate
Laws etc.
Principle 8: Businesses should support inclusive growth and

equitable development
1. Does the Company have specified programmes/initiatives/
projects in pursuit of the policy related to Principle 8? If yes
details thereof.

Yes. Since 2005, the Company has committed to spend
1% of Profit After Tax annually towards Corporate Social
Responsibility initiatives in the areas of education, health &
environment. The funds are utilized for local issues relevant
to the communities where the businesses operate as well
as projects at national level. Further, the unique ESOPs
(employee social options) platform provides employees
a menu of volunteering opportunities enabling them to
participate actively in the Companys CSR initiatives. The
top 4 CSR programs supported by the Company are:

a. Mahindra Pride School Livelihood training program

for youth from socially and economically disadvantaged
groups.
b. Project Nanhi Kali Provision of educational support

to underprivileged girls from poor urban, remote rural
and conflict afflicted urban communities across India.
c. Lifeline Express A Mobile hospital providing medical

interventions and surgeries in remote rural areas.
d. Mahindra Hariyali Afforestation initiative to improve

green cover & protect bio-diversity in the country.
2.
Are the programmes/projects undertaken through inhouse team/own foundation/external NGO/government
structures/any other organization?
Programs/projects are undertaken through a combination
of in-house teams, under the employee volunteerism
(ESOPS), through its own Foundations namely K. C.
Mahindra Education Trust & Mahindra Foundation and in
collaboration with recognized and reputed NGOs
3. Have you done any impact assessment of your initiative?
Impact assessment of large initiatives like Project Nanhi
Kali and Mahindra Pride School are undertaken from time
to time.

In addition, this year the Company has also carried out
impact assessments for the following 4 programs:

a. Sanskar a youth training & development program,
b. A project for Eradication of Needless Blindness,
c. Prayas HIV/AIDs awareness as well as a remediation

program,
d.
Bandhan designed to offer a holistic mother &
child health.
85
4. What is your Companys direct contribution to community

development projects- Amount in INR and the details of
the projects undertaken?

The Companys contribution to community development
projects amounts to Rs. 32.91 crores during the Financial
Year 2013-14.

The details of projects:
a.
Education (Nanhi Kali, Mahindra Pride Schools,
Scholarships & Grants, Mumbai Public Schools)
b.
Health (Lifeline Express, Aids Awareness, Blood
Donation/Antenatal Camps)

c. Environmental (Project Hariyali)
5.
Have you taken steps to ensure that this community
development initiative is successfully adopted by the
community? Please explain in 50 words, or so.

a.
Project Nanhi Kali, besides providing academic and
material support to the girls, also has a social support
component through which parents, teachers and
village elders are counselled on the importance of girls
education in particular and other gender related issues
in general. Of the 91537 Nanhi Kalis whose education
was supported during the Financial Year 2013-14, the
Mahindra Group supported the education of 36248
Nanhi Kalis.

Alumni of the Mahindra Pride Schools, become
mentors for new students and spread awareness of the
initiative in their respective localities participating in
the Road Shows community enrollment drives. During
the Financial Year 2013-14, 2233 students were trained
at 5 Mahindra Pride Schools (Pune, Chennai, Patna,
Chandigarh and Srinagar). 100% of students have been
placed with lucrative jobs, with a total of 8677 youth
being placed since inception of the school.

The Mahindra Group supported 28 Mumbai Public
Schools (BMC English medium schools run by Naandi
Foundation) enabling 12,174 children access quality
education. In the last financial year the project
witnessed some noteworthy impact including 13%
increase in enrollment numbers, 50% increase in
government teacher recruitment and formation of
24 School Management Committees (SMCs).
b.
The lifeline express program is conducted in
collaboration with local governments and communities
and spreads awareness on the importance of improved
86
health and medical interventions. This year the

9th edition of the Lifeline Express was conducted at
Karad, Maharashtra benefiting around 2614 people.

c.
The Project Hariyali program not only adds green
cover, but also enhances the livelihood of tribals in
areas where mass plantation is undertaken.
Principle 9: Businesses should engage with and provide value

to their customers and consumers in a responsible manner
1. What percentage of customer complaints/consumer cases
are pending as on the end of financial year?

Customer complaints are treated very seriously in
the organisation. The Company hears its customers
through various mediums such as emails to
customercare@mahindra.com, With You Hamesha 24X7
Call centre toll free no, websites, tweet handle, telephone,
letter, fax etc. The status of pending complaints/cases as on
March 31, 2014 is as follows:
Complaints
Consumer Cases
Auto Division
2.7%
32.0%
Farm Division
3.3%
39.6%
Truck and Bus

Division
7.8%
49.6%
2.
Does the Company display product information on
the product label, over and above what is mandated
as per local laws? Yes/No/N.A./Remarks(additional
information)
Yes. In addition to mandatory requirements, the Company
also provides service and safety labels as deemed
appropriate. e.g. product fuel economy data displayed for
each variant at selling points (Dealership).
3.
Is there any case filed by any stakeholder against
the Company regarding unfair trade practices,
irresponsible
advertising
and/or
anti-competitive
behavior during the last five years and pending as on end
of financial year. If so, provide details thereof, in about 50
words or so.

Yes. There are cases filed against the Company on
2 matters alleging unfair trade practice and 1 matter
alleging anti-competitive activity which are pending as on
the end of the financial year.
The anti-competitive activity alleged above is about the

non-availability of spare parts in the open market. One of
the allegations is that OEMs are restricting the availability
of spare parts in the open market and limiting them to their
own distribution network resulting in high prices of these
spare parts and their non-availability to the independent
car repairers. The hearing in the matter has been concluded
and the order is awaited. However, two of the respondent
car manufacturers have challenged in Chennai High Court,
the authority of Competition Commission of India (CCI) to
expand the scope of investigation on their own from three
to seventeen.
One of the matters pertaining to unfair trade practice is
where the Petitioner has alleged that although the
Company has appointed him as their sole dealer, the
Company has subsequently appointed a distributor in
the same Region. The Company has refused to deal with
him directly and compelled to deal through the other
distributor. The Petitioner has further alleged that the
Company has wrongfully invoked the Bank Guarantee. An
application has been moved to file additional documents
before the Tribunal and affidavits have been filed along

with that, which is currently pending.

In another matter pertaining to unfair trade practice,
the allegation is from an automotive dealer who has
alleged that his dealership has been terminated forcibly
and fraudulently by the Company. The complainant has
quantified his claims with interest under various heads
viz. Sales promotion, Warranty claims, free servicing, idle
wages of employees, electricity bills and also claimed
expenditure on construction of workshop, compensation
for loss and litigation etc. However, Honble Competition
Appellate Tribunal (COMPAT) has now restricted the scope
of the application only to non-grant of Scorpio dealership
and currently the cross examination of the complainant is
in progress.
4.
Did your Company carry out any consumer survey/
consumer satisfaction trends?

Yes, through

J.
MQRS
TNS
D. Power survey for Automobiles

survey for load carriers and
Survey for Tractors and Trucks
87
Financial Position at a Glance

Rupees crores
As per Revised Schedule VI
As per Old Schedule VI
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
7105
5821
5088
3904
3703
3214
2361
1871
1555
1475
11380
11834
10297
8913
6398
5786
4215
2238
1669
1190
(3)
18
Inventories
2804
2420
2358
1694
1189
1061
1084
878
879
760
Trade Receivable/Debtors
2510
2208
1929
1260
1258
1044
1005
701
638
512
Other Non Current/Current

Assets
7490
5171
4098
3753
3599
2959
1555
2169
1232
1028
13
14
18
18
24
Borrowings
3745
3227
3174
2321
2880
4053
2587
1636
883
1052
Long Term/Current Liabilities

and Provisions
9863
8953
7964
6535
5197
4798
3240
2666
2052
1760
Deferred Tax Liabilities/(Assets)

(Net)
890
615
527
355
240
(18)
57
20
147
190
Equity Capital
295
295
295
294
283
273
239
238
233
112
Reserves and Surplus
16496
14364
11810
10019
7544
4989
4111
3315
2676
1875
Net Worth
16791
14659
12105
10313
7827
5262
4350
3553
2909
1987
284.26
248.14
205.32
175.43 @138.10
192.12
180.87
147.98 *123.29
174.46
Net Fixed Assets

Investments
Foreign Currency Monetary
Item Translation Difference
Account Asset/(Liability)
Misc. Expenditure not

written off
Book Value Per Share (Rupees)
@ Book Value Per Share is shown after giving effect to the sub division of each Ordinary (Equity) Share of the face value Rs. 10
each fully paid up into two Ordinary (Equity) Shares of Rs. 5 each fully paid up in March, 2010.
* Book Value Per Share is shown after giving effect to a 1:1 bonus issue in September, 2005.
Book Value Per Share is calculated after reducing Misc. Expenditure not written off and Revaluation Reserve from Net Worth.
88
Summary of Operations
Rupees crores
As per Revised Schedule VI
As per Old Schedule VI
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
Income
43838
43962
34820
25989
20724
15072
13301
11645
9496
7840
Materials
29432
30425
23500
16264
12333
9274
7726
6828
5714
4603
Excise Duty (Net)
2612
2972
2501
2095
1807
1587
1584
1335
1136
1055
Personnel
2164
1866
1701
1432
1198
1025
868
666
553
465
Finance Costs/Interest
259
191
163
72
157
134
87
20
27
30

Expense
863
711
576
414
371
292
239
209
200
184
4191
3441
2881
2310
2102
1734
1563
1271
977
803
52
91
108
118
91
10
173
122
210
14
4369
4447
3606
3520
2847
1036
1407
1438
1099
714
611
1094
727
858
759
199
304
351
242
201
31
(19)
3758
3353
2879
2662
2088
868
1103
1068
857
513
#+966
+894
+869
+803
+624
+312
+321
+325
+278
+172
280
260
250
230
190
100
115
115
100
130
63.67
56.85
48.97
46.21
37.97
15.92
23.12
22.58
19.04
11.52
Other Expenses
Exceptional items
Profit before tax for the year
Tax for the year
Adj. pertaining to Prev. Years
Balance profit
Dividends
Equity Dividend (%)
Earnings Per Share (Rupees)
Vehicles produced/
purchased
(Units)
506035
555510
474145
355500
284516
201993
196956
169557
148213
148025
Vehicles sold
(Units)
507176
551469
469345
354073
282119
206688
195077
169679
147591
145024
Tractors produced
(Units)
277425
219893
246475
216388
173276
119098
98917
103847
87075
67115
Tractors sold
(Units)
268487
224844
236666
214325
175196
120202
99042
102531
85029
65390
# Proposed Dividend.
+ Including Income-tax on Proposed Dividend/Dividends.
Profit of Mahindra Holdings and Finance Limited for the period 1st February, 2008 to 31st March, 2008.
89
Financial Highlights
Debt Equity Ratio
Net Income and PAT (Rupees crores)

5000
45000
Net Income
40000
0.60
40990
4000
32319
0.50
Times
Net Income
30000
0.37
0.29
0.30
0.24
0.23
3758
3353
2879
2500
2662
18930
2000
2088
0.24
1500
1500
0.20
1000
0.10
1000
500
500
0.00
FY2010
FY2011
FY2012
FY2013
0
FY2010
FY2014
Earnings Per Share (Rs.)
3500
3000
23894
25000
20000
4500
PAT
35000
0.40
41226
PAT
0.70
FY2011
FY2012
FY2013
FY2014
Net Segmental Revenue

F-2014
70.00
63.67
60.00
48.97
EPS (Rs.)
50.00
40.00
Others
0.1%
56.85
Farm
Equipment
35.4%
46.21
37.97
30.00
20.00
10.00
Automotive
64.5%
0.00
FY2010
90
FY2011
FY2012
FY2013
FY2014
Independent Auditors Report to the Members of Mahindra & Mahindra Limited

Report on the Financial Statements
Opinion
1.
We have audited the accompanying financial statements of
Mahindra & Mahindra Limited (the Company), which comprise
the Balance Sheet as at 31stMarch, 2014, the Statement of Profit
and Loss and the Cash Flow Statement for the year then ended,
and a summary of the significant accounting policies and other
explanatory information.
5. In our opinion and to the best of our information and according
to the explanations given to us, the aforesaid financial statements
give the information required by the Act in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
Managements Responsibility for the Financial Statements

2. The Companys Management is responsible for the preparation
of these financial statements that give a true and fair view of the
financial position, financial performance and cash flows of the
Company in accordance with the Accounting Standards notified
under the Companies Act, 1956 (the Act) (which continue to
be applicable in respect of Section 133 of the Companies Act,
2013 in terms of General Circular 15/2013 dated 13th September,
2013 of the Ministry of Corporate Affairs) and in accordance
with the accounting principles generally accepted in India.
This responsibility includes the design, implementation and
maintenance of internal control relevant to the preparation and
presentation of the financial statements that give a true and fair
view and are free from material misstatement, whether due to
fraud or error.
Auditors Responsibility
3.
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in
accordance with the Standards on Auditing issued by the
Institute of Chartered Accountants of India. Those Standards
require that we comply with ethical requirements and plan and
perform the audit to obtain reasonable assurance about whether
the financial statements are free from material misstatement.
4.
An audit involves performing procedures to obtain audit
evidence about the amounts and the disclosures in the financial
statements. The procedures selected depend on the auditors
judgment, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud
or error. In making those risk assessments, the auditor considers
internal control relevant to the Companys preparation and fair
presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the effectiveness
of the Companys internal control. An audit also includes
evaluating the appropriateness of the accounting policies used
and the reasonableness of the accounting estimates made by the
Management, as well as evaluating the overall presentation of
the financial statements. We believe that the audit evidence we
have obtained is sufficient and appropriate to provide a basis for
our audit opinion.
(a) in the case of the Balance Sheet, of the state of affairs of
the Company as at 31stMarch, 2014;
(b) in the case of the Statement of Profit and Loss, of the profit
of the Company for the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows of
the Company for the year ended on that date.
Report on Other Legal and Regulatory Requirements

6. As required by the Companies (Auditors Report) Order, 2003
(the Order) issued by the Central Government in terms of
Section 227(4A) of the Act, we give in the Annexure a statement
on the matters specified in paragraphs 4 and 5 of the Order.
7. As required by Section 227(3) of the Act, we report that:

(a)
We have obtained all the information and explanations
which to the best of our knowledge and belief were
necessary for the purposes of our audit;
(b) In our opinion, proper books of account as required by law

have been kept by the Company so far as it appears from
our examination of those books;
(c) The Balance Sheet, the Statement of Profit and Loss, and
the Cash Flow Statement dealt with by this Report are in
agreement with the books of account;
(d) In our opinion, the Balance Sheet, the Statement of Profit
and Loss, and the Cash Flow Statement comply with the
Accounting Standards notified under the Act (which
continue to be applicable in respect of Section 133 of the
Companies Act, 2013 in terms of General Circular 15/2013
dated 13thSeptember, 2013 of the Ministry of Corporate
Affairs);
(e) On the basis of the written representations received from

the directors as on 31stMarch, 2014 taken on record by the
Board of Directors, none of the directors is disqualified as
on 31stMarch, 2014 from being appointed as a director in
terms of Section 274(1)(g) of the Act.
For DELOITTE HASKINS & SELLS
MUMBAI, 30 th May, 2014
Shyamak R Tata
Partner
(Membership No. 38320)
93
Annexure to the Independent Auditors Report

(Referred to in paragraph 6 under Report on Other Legal and
Regulatory Requirements section of our report of even date)
In our opinion and according to the information and explanations
given to us the nature of the Companys business/activities during the
year, clauses (xii), (xiii) and (xiv) of paragraph 4 of the Order, are not
applicable to the Company. In respect of the other clauses, we report
as under:
v. In respect of contracts or arrangements entered in the Register

maintained in pursuance of Section 301 of the Companies Act,
1956, to the best of our knowledge and belief and according to
the information and explanations given to us:

(a)
The particulars of contracts or arrangements referred to
in Section301 that needed to be entered in the Register
maintained under the said Section have been so entered.
(b) Where each of such transaction is in excess of Rs.5 lakhs

in respect of any party, having regard to the explanations
that some of items purchased, are of special nature and
suitable alternative sources are not readily available for
obtaining comparable quotations, the transactions have
been made at prices which are, prima facie, reasonable
having regard to the prevailing market prices at the
relevant time.
i. In respect of its fixed assets:

(a) The Company has maintained proper records showing full

particulars, including quantitative details and situation of
the fixed assets.
(b) The fixed assets have not been physically verified by the
Management during the year but the Company has a
system of verifying the fixed assets once in every three
years. In our opinion the frequency of verification is at
reasonable intervals.
(c) During the year, in our opinion, a substantial part of fixed

assets has not been disposed off by the Company.
ii.
In respect of its inventories:
(a)
A s explained to us, the inventories were physically
verified during the year by the Management at reasonable
intervals.
(b)
In our opinion and according to the information and
explanations given to us, the procedures of physical
verification of inventories followed by the Management
were reasonable and adequate in relation to the size of the
Company and the nature of its business.
(c)
In our opinion and according to the information and
explanations given to us, the Company has maintained
proper records of its inventories and no material
discrepancies were noticed on physical verification.
iii. The Company has neither granted nor taken any loans, secured
or unsecured, to/from companies, firms or other parties covered
in the Register maintained under Section 301 of the Companies
Act, 1956.
iv. In our opinion and according to the information and explanations
given to us, having regard to the explanations that some
of the items are of special nature and suitable alternative
sources are not readily available for obtaining comparable
quotations, there is an adequate internal control system
commensurate with the size of the Company and the nature
of its business with regard to purchase of inventories and fixed
assets and for the sale of goods and services. During the course
of our audit, we have not observed any major weakness in such
internal control system.
94
vi. In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions
of Sections 58A and 58AA or any other relevant provisions of
the Companies Act, 1956 and the Companies (Acceptance of
Deposits) Rules, 1975 with regard to the deposits accepted from
the public. According to the information and explanations given
to us, no Order has been passed by the Company Law Board or
the National Company Law Tribunal or the Reserve Bank of India
or any Court or any other Tribunal.
vii.
In our opinion, the Company has an adequate internal audit
system commensurate with the size of the Company and the
nature of its business.
We have broadly reviewed the cost records maintained by
viii.
the Company, as prescribed by the Central Government under
Section 209(1)(d) of the Companies Act, 1956 and are of the
opinion that, prima facie, the prescribed cost records have been
maintained and are being made up. We have, however, not
made a detailed examination of the cost records with a view to
determine whether they are accurate or complete.
ix. According to the information and explanations given to us, in
respect of statutory dues:

(a)
The Company has generally been regular in depositing
undisputed statutory dues, including Provident Fund,
Investor Education and Protection Fund, Employees State
Insurance, Income-Tax, Sales Tax, Wealth Tax, Service Tax,
Customs Duty, Excise Duty, Cess and other material statutory
dues applicable to it with the appropriate authorities.
(b) There were no undisputed amounts payable in respect of

Provident Fund, Investor Education and Protection Fund,
Employees State Insurance, Income-Tax, Sales Tax, Wealth
Tax, Service Tax, Customs Duty, Excise Duty, Cess and other
material statutory dues in arrears as at 31stMarch, 2014
for a period of more than six months from the date they
became payable.
(c) As at 31stMarch, 2014, the following are the particulars of dues on account of Income-Tax, Sales Tax, Service Tax, Wealth Tax, Customs
Duty, Excise Duty and Cess that have not been deposited on account of any dispute:
Name of Statute
Nature of Dues
Forum where the Dispute is pending
Income-Tax Laws
Income-Tax
Appellate Authority Tribunal Level
2009-2010
27.32
Appellate Authority Commissioner (Appeals)
1999-2012
49.95
High Court
1987-2008
181.78
1987-2011
4.03
Appellate Authority Commissioner (Appeals)
1997-2013
42.48
2001-2009
27.48
Appellate Authority Commissioner
2007-2012
23.73
Supreme Court
1991-1996
538.56
High Court
2007-2008
32.48
1990-2012
749.80
Appellate Authority Commissioner
2002-2013
18.95
High Court
1996-2001
1.49
2008-2009
1.14
Sales Tax Laws
Service Tax Laws
Excise Duty Laws
Customs Duty Laws
Sales Tax
Service Tax
Excise Duty
Customs Duty
Period to which the

amount relates
Amount involved
(Rs. in crores)
The Company does not have accumulated losses at the end

x.
of the financial year and the Company has not incurred cash
losses during the financial year covered by our audit and in the
immediately preceding financial year.
xv. During the year the Company has not made any preferential
allotment of shares to parties and companies covered in the
register maintained under Section301 of the Companies
Act, 1956.
xi. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of
dues to financial institutions, banks and debenture holders.
xvi.
During the
debentures.
xii. According to the information and explanations given to us, the

Company has not given any guarantees for loans taken by others
from banks or financial institutions, the terms and conditions,
whereof, in our opinion are prejudicial to the interests of the
Company.
year,
Company
had
issued
unsecured
xvii. The Company has not raised any money by public issue during
the year.
xviii. To the best of our knowledge and according to the information
and explanations given to us, no fraud by the Company and
no significant fraud on the Company has been noticed or
reported during the year.
xiii. In our opinion and according to the information and explanations
given to us, the term loans have been applied for the purposes
for which they were obtained.
xiv. In our opinion and according to the information and explanations
given to us and on an overall examination of the Balance Sheet,
we report that funds raised on short term basis, have not been
used during the year for long-term investment.
the
For DELOITTE HASKINS & SELLS

MUMBAI, 30 th May, 2014
Shyamak R Tata
Partner
95
Balance Sheet as at 31
st
March, 2014
Rupees crores
Note
I.

EQUITY AND LIABILITIES

SHAREHOLDERS FUNDS :
(a) Share Capital.....................................................................................
(b) Reserves and Surplus........................................................................
NON CURRENT LIABILITIES :

(a) Long Term Borrowings.....................................................................
(b) Deferred Tax Liabilities (Net)..........................................................
(c) Other Long Term Liabilities.............................................................
(d) Long Term Provisions.......................................................................
CURRENT LIABILITIES :
(a) Short Term Borrowings....................................................................
(b) Trade Payables..................................................................................
(c) Other Current Liabilities..................................................................
(d) Short Term Provisions......................................................................
2
3
2014
295.16
16,496.03
295.16
14,363.76
16,791.19
4
5
6
7
3,744.42
889.65
586.27
510.33
0.74
6,068.80
1,133.56
1,563.69
Total..............
II. ASSETS

NON CURRENT ASSETS :

(a) Fixed Assets
Tangible Assets.................................................................................
Intangible Assets..............................................................................
Capital Work-in-Progress.................................................................

Intangible Assets Under Development..........................................

(b) Non Current Investments.................................................................

(c) Long Term Loans and Advances.....................................................
(d) Other Non Current Assets...............................................................
CURRENT ASSETS :
(a) Current Investments.........................................................................
(b) Inventories.........................................................................................
(c) Trade Receivables.............................................................................
(d) Cash and Bank Balances..................................................................
(e) Short Term Loans and Advances.....................................................
(f) Other Current Assets.......................................................................
12 (A)
12 (B)
13 (A)
14
15
4,644.28
54.63
5,579.71
1,052.17
1,463.88
8,766.79
8,150.39
31,288.65
27,453.59
5,706.30
170.65
394.86
833.58
4,751.06
206.80
495.54
367.94
7,105.39
9,787.73
3,018.12
88.49
5,821.34
10,571.50
2,087.47
29.85
19,999.73
13 (B)
16
17
18
19
20
14,658.92
3,172.44
614.85
415.40
441.59
5,730.67
8
9
10
11
2013
1,592.12
2,803.63
2,509.84
2,950.39
945.83
487.11
Total..............
18,510.16
1,261.96
2,419.77
2,208.35
1,781.41
763.40
508.54
11,288.92
8,943.43
31,288.65
27,453.59
The accompanying notes 1 to 49 are an integral part of the Financial Statements

In terms of our report attached.
Shyamak R Tata
Partner
96
Bharat Doshi
Deepak S. Parekh
Nadir B. Godrej
M. M. Murugappan
A. K. Nanda
Narayanan Vaghul
R. K. Kulkarni
Vishakha N. Desai
Vikram Singh Mehta
S. B. Mainak
Anand G. Mahindra
Dr. Pawan Goenka

Executive Director & President
(Automotive and Farm Equipment Sector)
Directors
V. S. Parthasarathy
Narayan Shankar
Chief Financial Officer & Group CIO

Company Secretary
Statement of Profit and Loss for the year ended 31
st
March, 2014
Rupees crores
Note
Gross Revenue from Sale of Products and Services......................................
Less : Excise Duty..............................................................................................
21
2014
2013
42,575.04
2,611.68
42,874.61
2,971.49
39,903.12
538.04
Net Revenue from Sale of Products and Services..........................................

Other Operating Revenue................................................................................
21
39,963.36
545.14
Revenue from Operations (Net)......................................................................

Other Income.....................................................................................................
21
22
40,508.50
717.99
40,441.16
549.17
41,226.49
40,990.33
23
24
21,630.08
8,076.92
20,749.87
9,752.68
25
26
27
28
29
(274.67)
2,163.72
259.22
863.34
4,294.28
(78.03)
1,866.45
191.19
710.81
3,524.01
Less : Cost of Manufactured Products Capitalised.......................................
37,012.89
103.04
36,716.98
83.12
Total Expenses...................................................................................................
Profit Before Exceptional Item and Tax..........................................................
Add : Exceptional Items...................................................................................
36,909.85
4,316.64
52.79
36,633.86
4,356.47
90.62
4,369.43
4,447.09
Total Revenue....................................................................................................
Expenses :
Cost of Materials Consumed............................................................................
Purchases of Stock-in-Trade..............................................................................
Changes in Inventories of Finished Goods, Work-in-Progress,
Stock-in-Trade and Manufactured Components............................................
Employee Benefits Expense..............................................................................
Finance Costs.....................................................................................................
Depreciation and Amortisation Expense........................................................
Other Expenses..................................................................................................
39
Profit Before Tax...............................................................................................

Less : Tax Expense
Current Tax.............................................................................................

Less : MAT Credit Entitlement..............................................................
837.95
488.15
933.21
Net Current Tax......................................................................................

Deferred Tax (Net).................................................................................
349.80
261.28
933.21
161.06
Profit for the year.............................................................................................

Earnings per equity share
611.08
1,094.27
3,758.35
3,352.82
63.67
61.07
56.85
54.61
40
(Face value Rs. 5/- per share) (Rupees)

Basic....................................................................................................................
Diluted................................................................................................................
Shyamak R Tata
Partner
Bharat Doshi
Deepak S. Parekh
Nadir B. Godrej
M. M. Murugappan
A. K. Nanda
Narayanan Vaghul
R. K. Kulkarni
Vishakha N. Desai
Vikram Singh Mehta
S. B. Mainak
Anand G. Mahindra
Dr. Pawan Goenka

Directors
V. S. Parthasarathy
Narayan Shankar

Company Secretary
97
Cash Flow Statement
Rupees crores
2014
2013
4,316.64
4,356.47
863.34
(70.04)
(599.48)
259.22
56.14
7.19
0.69
(2.79)
3.57
710.81
(33.37)
(371.51)
191.19
67.06
17.04
(62.62)
(10.20)
(1.84)
517.84
506.56
Operating Profit before Working Capital changes................................................................................
4,834.48
4,863.03

Changes in :
Trade and other receivables..................................................................................................................
Inventories...............................................................................................................................................
Trade and other payables......................................................................................................................
(445.91)
(270.18)
503.47
(784.83)
(62.74)
1,003.48
(212.62)
155.91
A. CASH FLOW FROM OPERATING ACTIVITIES :

Profit before exceptional item and taxation..........................................................................................

Adjustments for :
Depreciation and Amortisation............................................................................................................
(Profit)/Loss on Exchange (Net)............................................................................................................
Investment and Interest Income...........................................................................................................
Interest, Commitment and Finance Charges.......................................................................................
Employee Stock Compensation Expense.............................................................................................
Write off of Intangible Asset Under Development............................................................................
(Profit)/Loss on sale of investments (Net)...........................................................................................
Profit on fixed assets sold/scrapped/written off (Net)......................................................................
Excess of cost over fair value of current investments (Net)..............................................................
Excess of cost over fair value of current investments, reversed (Net).............................................
Cash generated from operations.............................................................................................................

Income Taxes paid (Net of refunds)........................................................................................................
4,621.86
(894.22)
5,018.94
(873.23)
NET CASH FROM OPERATING ACTIVITIES...............................................................................................
3,727.64
4,145.71
(1,704.30)
(1,435.62)
B. CASH FLOW FROM INVESTING ACTIVITIES :

Purchase of fixed assets............................................................................................................................
Sale of fixed assets....................................................................................................................................
26.71
46.32
Purchase of long term investments Subsidiaries.................................................................................
(1,411.65)
(1,172.17)
Purchase of other long term investments...............................................................................................
(4.22)
(4.08)
Purchase of current investments..............................................................................................................
(58,102.41)
(40,593.17)
Sale/Redemption of long term investments Subsidiaries...................................................................
1,165.02
Sale of long term investments Associates............................................................................................
10.02
2.53
Sale of current investments......................................................................................................................
57,837.74
40,484.34
Interest received........................................................................................................................................
228.46
142.69
Dividends received.....................................................................................................................................
298.33
182.53
Bank Deposits placed................................................................................................................................
(1,730.75)
(724.18)
Bank Deposits matured.............................................................................................................................
1,121.27
160.56
Increase in Earmarked Balances & Margin account...............................................................................
(1.45)
(1.71)
Inter corporate deposits given.................................................................................................................
(1,146.09)
(936.23)
Inter corporate deposits refunded..........................................................................................................
956.85
860.22
Loan given..................................................................................................................................................
(112.70)
Repayment of loan given..........................................................................................................................
55.75
Exceptional Items :
106.34
92.02
(2,407.08)
(2,895.95)
Sale of long term investments..............................................................................................................

98
NET CASH USED IN INVESTING ACTIVITIES.............................................................................................
Cash Flow Statement
(contd.)
Rupees crores
2014
2013
183.90
C. CASH FLOW FROM FINANCING ACTIVITIES :

Proceeds from issue of Share Capital (including Securities Premium).................................................
Proceeds from borrowings........................................................................................................................
620.40
227.48
Repayments of borrowings .....................................................................................................................
(473.99)
(380.73)
Net increase/(decrease) in Cash Credit Facilities....................................................................................
0.05
(0.17)
Dividends paid [including income-tax on dividends Rs. 93.46 crores (2013 : Rs. 101.13 crores)].....
(893.51)
(866.97)
Interest, commitment and finance charges paid...................................................................................
(260.78)
(201.50)
NET CASH USED IN FINANCING ACTIVITIES............................................................................................
(823.93)
(1,221.89)
NET INCREASE IN CASH AND CASH EQUIVALENT.................................................................................
496.63
27.87
OPENING CASH AND CASH EQUIVALENT...............................................................................................
1,163.96
1,136.11
CASH AND CASH EQUIVALENT RECEIVED/(GIVEN) PURSUANT TO THE SCHEME OF ARRANGEMENT/

BUSINESS TRANSFER..................................................................................................................................
45.02
(0.02)
1,705.61
1,163.96
CLOSING CASH AND CASH EQUIVALENT................................................................................................
99
Notes to the Cash Flow Statement

Rupees crores
2014
2013
1. The above Cash Flow Statement has been prepared under the indirect method as set out in
Accounting Standard 3 Cash Flow Statement
2.
Cash and Cash Equivalents....................................................................................................................
1,705.61
1,163.96
Unrealised Loss on foreign currency Cash and Cash Equivalents......................................................
(0.04)
1,705.57
1,163.96
Other Bank Balances..............................................................................................................................
1244.82
617.45
Cash and Bank Balances (Note 18).......................................................................................................
2,950.39
1,781.41
3.
(a) Pursuant to the Scheme of Arrangement (The Scheme) between Mahindra Trucks and
Buses Limited (MTBL), a subsidiary of the Company, and the Company, as sanctioned by
Honourable High Court of Bombay vide its order dated 7thMarch, 2014, the entire assets
and liabilities, duties and obligations of the Trucks business of MTBL was transferred
to and vested in the Company, from 1stApril, 2013 (the appointed date) at the values
indicated below :
(i)
Loan Funds..............................................................................................................................
246.43
(ii)
Other Liabilities......................................................................................................................
343.16
(iii) Fixed Assets (Net)..................................................................................................................
519.54
(iv)
Investments.............................................................................................................................
5.00
(v)
Other Assets...........................................................................................................................
257.53
(i)
5.89
(ii) Fixed Assets (Net)..................................................................................................................
3.97
(iii)
Other Assets...........................................................................................................................
15.16
(i)
2.07
(ii) Fixed Assets (Net)..................................................................................................................
3.31
(iii)
Other Assets...........................................................................................................................
12.24
(b) The Company has transferred certain assets alongwith certain liabilities of its Defense
system division to a wholly owned subsidiary in the current year with effect from 1stApril,
2013. The value of the assets and liabilities of the division transferred are at the values
indicated below :
(c) The Company had transferred its Naval system division to a wholly owned subsidiary in
the previous year with effect from 1stJune, 2012. The value of the assets and liabilities of
the division transferred are at the values indicated below :
(d) This arrangement/transfers are non-cash transactions.

Shyamak R Tata
Partner
100
Bharat Doshi
Deepak S. Parekh
Nadir B. Godrej
M. M. Murugappan
A. K. Nanda
Narayanan Vaghul
R. K. Kulkarni
Vishakha N. Desai
Vikram Singh Mehta
S. B. Mainak
Anand G. Mahindra
Dr. Pawan Goenka

Directors
V. S. Parthasarathy
Narayan Shankar

Company Secretary
Notes forming part of the Financial Statements

1.
Significant Accounting Policies :
(A) Basis of Accounting :
The financial statements are prepared in accordance with the generally accepted accounting principles in India and comply with the
Accounting Standards notified under the Companies Act, 1956 and the relevant provisions thereof.

(B) Tangible Assets :
(a) (i) Tangible assets are carried at cost less depreciation except as stated in (ii) below. Cost includes financing cost relating to
borrowed funds attributable to the construction or acquisition of qualifying tangible assets upto the date the assets are
ready for use. Where the acquisition of depreciable tangible assets are financed through long term foreign currency loans
(having a term of 12 months or more at the time of their origination) the exchange differences on such loans are added to or
subtracted from the cost of such depreciable tangible assets.
When an asset is scrapped or otherwise disposed off, the cost and related depreciation are removed from the books of account
and resultant profit (including capital profit) or loss, if any, is reflected in the Statement of Profit and Loss.

(ii) Land and Buildings, had been revalued as at 31stOctober, 1984 at depreciated replacement values on the basis of a valuation
made by a firm of Chartered Surveyors and Valuers. The indices, if any, used are not stated in the valuation.
(b) (i) Leasehold land is amortised over the period of the lease.
(ii) Depreciation on assets is calculated on Straight Line Method over their estimated useful lives, or lives based on the rates
specified in Schedule XIV to the Companies Act, 1956, whichever is higher. Accordingly depreciation is provided on :
(1) Certain items of Plant and Machinery individually costing more than Rs. 5,000 over their useful lives (2years, 3years,
5years or 7years, as the case may be).
(2) Cars and Vehicles at 15% of cost.
(iii) Depreciation charge for each year is after deducting the amount representing the depreciation on the increase due to
revaluation of Land and Buildings, transferred from the Revaluation Reserve.
(C) Intangible Assets :
Intangible assets are carried at cost and amortised on a Straight Line Basis so as to reflect the pattern in which the assets economic
benefits are consumed.

(a) Technical Knowhow :
The expenditure incurred is amortised over the estimated period of benefit, not exceeding six years commencing with the year of
purchase of the technology.

(b) Development Expenditure :
The expenditure incurred on technical services and other project/product related expenses are amortised over the estimated period
of benefit, not exceeding five years.

(c) Software Expenditure :
The expenditure incurred is amortised over three financial years equally commencing from the year in which the expenditure
is incurred.

(d) Others :
The expenditure incurred is amortised over the estimated period of benefit, not exceeding ten years.

(D) Impairment of Assets :
The carrying value of assets/cash generating units at each balance sheet date are reviewed for impairment. If any indication of
impairment exists, the recoverable amount of such assets is estimated and impairment is recognised, if the carrying amount of these
assets exceeds their recoverable amount. The recoverable amount is the greater of the net selling price and their value in use. Value
in use is arrived at by discounting the future cash flows expected to arise from the continuing use of an asset and from its disposal at
the end of its useful life to their present value based on an appropriate discount factor. When there is indication that an impairment
loss recognised for an asset in earlier accounting periods no longer exists or may have decreased, such reversal of impairment loss is
recognised in the Statement of Profit and Loss, except in case of revalued assets.
101
(E) Investments :
Long term investments are valued at cost. However, provision for diminution in value is made to recognise a decline other than
temporary in the value of investments. Current investments are valued at the lower of cost and fair value, determined by category of
investment.

(F) Inventories :
Inventories comprise all costs of purchase, conversion and other costs incurred in bringing the inventories to their present location
and condition.
Raw materials and bought out components are valued at the lower of cost or net realisable value. Cost is determined on the basis of
the weighted average method.

Finished goods produced and purchased for sale, manufactured components and work-in-progress are carried at cost or net
realisable value whichever is lower. Excise duty is included in the value of finished goods inventory.
Stores, spares and tools other than obsolete and slow moving items are carried at cost. Obsolete and slow moving items are valued at
cost or estimated net realisable value, whichever is lower.

(G) Foreign Exchange Transactions :

Transactions in foreign currencies (other than firm commitments and highly probable forecast transactions) are recorded at the
exchange rates prevailing on the date of transaction. Monetary items are translated at the year-end rates. The exchange difference
between the rate prevailing on the date of transaction and on the date of settlement as also on translation of monetary items at the
end of the year (other than those relating to long term foreign currency monetary items) is recognised as income or expense, as the
case may be.
Exchange differences relating to long term foreign currency monetary items, to the extent they are used for financing the acquisition
of depreciable tangible assets are added to, or subtracted from, the cost of such depreciable tangible assets and the balance
accumulated in Foreign Currency Monetary Item Translation Difference Account, under Reserves and Surplus, and amortised over the
balance term of the long term monetary item.
Any premium or discount arising at the inception of a forward exchange contract is recognised as income or expense over the life of the
contract, except where the contract is designated as a cash flow hedge.

(H) Derivative Instruments and Hedge Accounting :

The Company uses foreign currency forward contracts and currency options to hedge its risks associated with foreign currency
fluctuations relating to certain firm commitments and highly probable forecast transactions. The Company does not hold derivative
financial instruments for speculative purposes. The Company has applied to such contracts the hedge accounting principles set
out in Accounting Standard 30 Financial Instruments : Recognition and Measurement (AS 30) by marking them to market at each
reporting date.
Changes in the fair value of the contracts that are designated and effective as hedges of future cash flows are recognised directly
in Hedging Reserve Account and the ineffective portion is recognised in the Statement of Profit and Loss.

(I) Revenue Recognition :

Sale of products and services including export benefits thereon are recognised when the products are shipped or services
rendered.

Excise duty recovered on sales is included in Revenue from Operations.
Dividend from investments are recognised in the Statement of Profit and Loss when the right to receive payment is established.
(J) Government Grants :

The Company, directly or indirectly through a consortium of Mahindra Group Companies, is entitled to various incentives from
government authorities in respect of manufacturing units located in developing regions. The Company accounts for its entitlement as
income on accrual basis.

(K) Employee Benefits :
In respect of Defined Contribution Plans/Defined Benefit Plans/Long term Compensated Absences :
Companys contributions paid/payable during the year to Superannuation Fund, ESIC and Labour Welfare Fund are recognised in
the Statement of Profit and Loss.
102
Contributions to Provident Fund are made to a Trust administered by the Company/Regional Provident Fund Commissioner and are
charged to Statement of Profit and Loss as incurred. The Company is liable for the contribution and any shortfall in interest between the
amount of interest realised by the investments and the interest payable to members at the rate declared by the Government of India in
respect of the Trust administered by the Company.
Companys liability towards gratuity, long term compensated absences, post retirement medical benefit and post retirement housing
allowance schemes are determined by independent actuaries, using the projected unit credit method. Past services are recognised on
a straight line basis over the average period until the benefits become vested. Actuarial gains and losses are recognised immediately
in the Statement of Profit and Loss as income or expense. Obligation is measured at the present value of estimated future cash
flows using a discounted rate that is determined by reference to the market yields at the Balance Sheet date on Government Bonds
where the currency and terms of the Government Bonds are consistent with the currency and estimated terms of the defined
benefit obligation.

In respect of Employee Stock Option Scheme :
The compensation cost of stock options granted to employees is measured by the Intrinsic Value Method. The intrinsic value, which
is the excess of the market price of the underlying equity shares as of the date of the grant over the exercise price of the option, is
recognised and amortised on straight line basis over the vesting period.

(L) Borrowing Costs :
All borrowing costs are charged to the Statement of Profit and Loss except :
(i) Borrowing costs that are attributable to the acquisition or construction of assets that necessarily take a substantial period of time
to get ready for their intended use, which are capitalised as part of the cost of such assets.
(ii) Expenses incurred on raising long term borrowings are amortised over the period of borrowings. On early buyback, conversion or
repayment of borrowings, any unamortised expenditure is fully written off in that year.
(M) Product Warranty :
In respect of warranties given by the Company on sale of certain products, the estimated costs of these warranties are accrued at the
time of sale. The estimates for accounting of warranties are reviewed and revisions are made as required.

(N) Leases :
The Companys significant leasing arrangements are in respect of operating leases for premises (residential, office, stores, godowns,
computer hardware etc.). The leasing arrangements, which are not non-cancellable, range between eleven months and five years
generally, and are usually renewable by mutual consent on agreed terms. The aggregate lease rentals payable are charged
as rent.

(O) Taxes on Income :

Current tax is determined as the amount of tax payable in respect of taxable income for the year. Deferred tax is recognised,
subject to consideration of prudence, on timing differences, being the difference between taxable income and accounting income
that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets arising on
account of unabsorbed depreciation or carry forward of tax losses are recognised only to the extent that there is virtual certainty
supported by convincing evidence that sufficient future tax income will be available against which such deferred tax assets can
be realised.
Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment
to future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income tax
against which the MAT paid will be adjusted.

(P) Segment Reporting :

Segments are identified having regard to the dominant source and nature of risks and returns and internal organisation and
management structure.

Revenues and expenses have been identified to the segment based on their relationship to the business activity of the segment.
Income/Expenses relating to the enterprise as a whole and not allocable on a reasonable basis to business segments are reflected as
unallocated corporate income/expenses. Inter-segment transfers are at prices which are generally market led.
103
2.
Share Capital :
Rupees crores
2014
2013
1,20,00,00,000 Ordinary (Equity) Shares of Rs. 5 each....................................................................
600.00
600.00
25,00,000
Unclassified Shares of Rs. 100 each.........................................................................
25.00
25.00
625.00
625.00
307.95
306.99
2,55,69,113
(2013 : 2,36,57,485) Ordinary (Equity) Shares of Rs. 5 each fully paid up issued
to ESOP Trust but not allotted to employees .......................................................
12.79
11.83
Adjusted : Issued and Subscribed Share Capital..................................................................................
295.16
295.16
Authorised :
Issued and Subscribed :

61,58,92,384 (2013 : 61,39,80,756) Ordinary (Equity) Shares of Rs. 5 each fully paid up.........
Less :
(A) Reconciliation of number of Ordinary (Equity) Shares and amount outstanding :

2014
2013
No. of shares
Rupees crores
No. of shares
Rupees crores
61,39,80,756
306.99
61,39,74,839
306.99
Shares issued under Schemes of Arrangement................
5,917
Shares issued to ESOP Trust................................................
19,11,628
0.96
Balance as at the end of the year......................................
61,58,92,384
307.95
61,39,80,756
306.99
Shares issued to ESOP Trust but not allotted to

Employees [Note 3(K)].........................................................
2,55,69,113
12.79
2,36,57,485
11.83
Adjusted : Issued and Subscribed Share Capital...............
59,03,23,271
295.16
59,03,23,271
295.16

Balance as at the beginning of the year...........................
Add :
Less :
* denotes amounts less than Rs. 50,000
(B) The Ordinary (Equity) Shares of the Company rank pari-passu in all respects including voting rights and entitlement to dividend.
(C) Details of Ordinary (Equity) Shares held by shareholders holding more than 5% of the aggregate shares in the Company :
Name of the Shareholder
104
2013
No. of shares % shareholding
(i) Prudential Management and Services Pvt. Ltd........
7,07,60,970
11.49
6,99,86,970
11.40
(ii) Life Insurance Corporation of India...........................
7,00,77,205
11.38
6,52,03,016
10.62
(iii) M&M Benefit Trust......................................................
5,18,35,214
8.42
5,18,35,214
8.44
3,29,49,467
5.37
(iv) The Bank of New York Mellon (for GDR holders).....

2014
No. of shares % shareholding
(D)
Issued and Subscribed Share Capital includes an aggregate of 40,647 (2013 : 6,61,99,551) Ordinary (Equity) Shares of Rs. 5 each allotted as
fully paid-up pursuant to Schemes of Arrangement without payment having been received in cash, for a period of five years immediately
preceding the end of the financial year.
3.
Reserves and Surplus : (contd.)

Rupees crores
2014
2013
(A) Capital Reserve :

Balance as at the beginning of the year......................................................................................
10.13
10.13
Balance as at the end of the year.................................................................................................
10.13
10.13
(B)

Securities Premium Account :

Add :
On account of issue of Ordinary (Equity) Shares to ESOP Trust...............................................
On account of exercise of employee stock options....................................................................
2,310.22
2,284.44
182.94
25.88
2,493.16
2,310.32
0.12
0.10
2,493.04
2,310.22

Less :

Applied, in accordance with Section 78 of the Companies Act, 1956, towards :

Writing-off of debenture issue expenses [Net of Tax of Rs. 0.06 crores (2013 :
Rs. 0.05 crores)]...............................................................................................................................
Less :
Premium on shares issued to ESOP Trust but not allotted to employees [Note 3(K)]...........
259.61
76.67
2,233.43
2,233.55
(C)

Revaluation Reserve :
Less :
Adjusted against depreciation for the year.................................................................................
Adjusted in respect of revalued Land and Buildings sold/demolished....................................
10.84
10.91
0.05
0.06
0.01
10.79
10.84
(D)

General Reserve :
Add :
Transfer from Surplus in Statement of Profit and Loss..............................................................
1,819.96
1,397.23
400.00
400.00
On account of employee stock options*......................................................................................
51.44
22.73
2,271.40
1,819.96
Less :
Consequent to the Scheme of Arrangement [Note 37].............................................................
565.85
1,705.55
1,819.96
Add :
Bonus shares issued to ESOP Trust but not allotted to employees [Note 3(K)]......................
1.08
1.08
1,706.63
1,821.04
* relating to shares other than those allotted by the Company to the ESOP Trust
(E) Debenture Redemption Reserve :


Add :
Transfer from Surplus in Statement of Profit and Loss..............................................................
71.43
57.14
16.79
14.29
Balance as at the end of the year................................................................................................
88.22
71.43
105
3.

Rupees crores
2014
2013
277.98
216.29
(F) Investment Fluctuation Reserve* [Note 38] :

Add :
Provision no longer required written back.................................................................................
0.52
Adjustment to Deferred Tax on assets relating to a product development project..............
66.29
278.50
282.58
Less :
Utilisation during the year [Net of Tax of Rs. Nil crores (2013 : Rs. 1.87 crores)]...................
147.76
4.60
130.74
277.98
*p
ursuant to Schemes of Arrangement/Amalgamation approved by the Honourable
High Court
(50.08)
(37.96)
36.01
(19.67)
(14.07)
(57.63)
(G) Hedging Reserve Account :

Add :

Gain/(Loss) on mark to market of hedging instruments designated and effective as hedges
of future cash flows.......................................................................................................................
Less :
Deferred Tax....................................................................................................................................
(12.24)
7.55
(26.31)
(50.08)
244.15
257.77
39.40
46.61
283.55
304.38
(H) Employee Stock Options Outstanding :
106
Add :
On account of options granted during the year.........................................................................
Less :
Transfer to Securities Premium Account on exercise of options during the year...................
25.88
Transfer to General Reserve on account of employee stock options*.....................................
51.44
22.73
For options lapsed during the year..............................................................................................
9.00
11.62
223.11
244.15
Less :
Deferred Employee Compensation Expense...............................................................................
84.41
112.69
138.70
131.46
* relating to shares other than those allotted by the Company to the ESOP Trust
3.

Rupees crores
2014
2013
(94.51)
(66.40)
(92.45)
(56.34)
(186.96)
(122.74)
(I) Foreign Currency Monetary Item Translation Difference Account :

Balance as at the beginning of the year ....................................................................................
Add :
Arising on revaluation of long term monetary assets and liabilities (net)..............................
Less :
Amortisation during the year........................................................................................................
65.95
28.23
(121.01)
(94.51)
9,951.92
7,904.54
3,758.35
3,352.82
13,710.27
11,257.36
(J) Surplus in Statement of Profit and Loss :
Add :
Profit for the year...........................................................................................................................
Less :
Transfer to Debenture Redemption Reserve...............................................................................
16.79
14.29
Transfer to General Reserve..........................................................................................................
400.00
400.00
Proposed Dividend [Rs. 14.00 per share (2013 : Rs. 13.00 per share)].....................................
862.25
798.17
Income-tax on Proposed Dividend................................................................................................
103.56
92.98
Dividend for 2012-13 paid on shares issued in June 2013..........................................................
2.48
Income-tax on dividend paid........................................................................................................
0.48
12,324.71
9,951.92
Total Reserves and Surplus...........................................................................................................
16,496.03
14,363.76
(K) The Guidance Note on Accounting for Employee Share-based Payments issued by The Institute of Chartered Accountants of India requires
that shares allotted to a Trust but not transferred to employees be reduced from Share Capital and Reserves and Surplus. Accordingly,
the Company has reduced the Share Capital by Rs. 11.71 crores (2013 : Rs. 10.75 crores) and Securities Premium Account by Rs. 259.61
crores (2013 : Rs. 76.67 crores) for the 2,34,16,888 shares of Rs. 5 each (2013 : 2,15,05,260 shares of Rs. 5 each) held by the Trust pending
transfer to the eligible employees.
The Share Capital of the Company has also been reduced and the General Reserve increased by Rs. 1.08 crores (2013 : Rs. 1.08 crores)
for the 21,52,225 bonus shares of Rs. 5 each (2013 : 21,52,225 bonus shares of Rs. 5 each) issued by the Company in September, 2005 to
the Trust but not yet transferred by the Trust to the employees.
The above monies which are treated as advance received from the Trust, is included under Other Current Liabilities and Other Long Term
Liabilities.
107
4.
Long Term Borrowings :

Rupees crores
2014
2013
133.33
160.72
266.67
294.05
266.67
500.00
1,797.45
58.71
1,094.21
1,740.20
47.93
1,117.64
3,450.37
2,905.77
3,744.42
3,172.44
(A) Secured :

(B)

(i) Debentures/Bonds.................................................................................................................
(ii) Term Loans from Banks........................................................................................................
Unsecured :
(i) Debentures.............................................................................................................................
(ii) Term Loans from Banks........................................................................................................
(iii) Fixed Deposits........................................................................................................................
(iv) Other Loans............................................................................................................................

(a) Secured Borrowings :
Debentures/Bonds include Secured Non-Convertible debentures carrying an interest rate of 11.95% for a period of seven years and are
repayable in three equal annual installments from December, 2013. These debentures are secured by tangible assets of the Company
at certain locations including immovable items therein and by way of a first pari-passu charge on the movable plant and machinery,
machinery spares, tools and accessories and other movables, both present and future (save and except book debts) situated at certain
locations of the Company.
Term loans from banks are secured by way of first ranking pari-passu charge on certain immovable and movable properties both
present and future, relating to Medium and Heavy Commercial Vehicle (MHCV) project as well as second charge on certain current
assets, relating to MHCV project. These loans carry floating rate of interest ranging from 11.00% to 11.80%. The loan is repayable in
28 quarterly installments of Rs. 10.71 crores each, from 31st March, 2012.

(b) Unsecured Borrowings :
Debentures are Senior Redeemable Non-Convertible Debentures carrying an interest rate of 9.55% with a tenure of 50 years, repayable
in July, 2063.

Term loans from banks comprise of :

(i) USD External Commercial Borrowings carrying an average margin of 157 basis points over three month USD Libor and are repayable
after five years and one day from the date of respective availment of loan i.e. Rs. 898.72 crores in February, 2016, Rs. 599.15 crores
in August, 2016 and Rs. 299.58 crores in September, 2016.

(ii) JPY External Commercial Borrowings carrying an average margin of 39 basis points over six month JPY Libor is for a period of five
years and one day. The loan is repayable in three equal annual installments from August, 2012. Rs. 113.04 payable in August, 2014
is shown under current maturities of long term borrowings.

Fixed deposits are repayable three years from the date of deposit and carry an interest rate of 8.00% and 9.75%.
Other loans comprise deferred sales tax loans which are interest free and repayable in five equal installments after ten years from the
year of availment of respective loan. These loans are repayable :
Rupees crores
(i) In the second year.................................................................................................................
(ii) In the third to fifth year.......................................................................................................
(iii) After five years.......................................................................................................................
2014
39.08
235.42
819.71
2013
23.53
178.31
915.80
1,094.21
1,117.64
(c) Current maturities in respect of long term borrowings have been included in Note 10 as under :
Rupees crores
(i)
(ii)
(iii)
(iv)
108
Debentures/Bonds.................................................................................................................
Term Loans from Banks.........................................................................................................
Fixed Deposits........................................................................................................................
Other Loans............................................................................................................................
2014
133.34
155.90
10.93
2013
133.33
111.80
3.98
12.41
300.17
261.52
5.
Deferred Tax Liabilities (Net) :
The components of Deferred Tax Liabilities and Assets are as under :

Rupees crores
Deferred Tax Liabilities :

(i) On fiscal allowances on fixed assets.............................................................................................
(ii) Others...............................................................................................................................................
6.
2014
2013
1,105.68
57.66
806.81
47.31
1,163.34
854.12
Deferred Tax Assets :

(i) On provision for employee benefits.............................................................................................
(ii) On provision for doubtful debts/advances..................................................................................
(iii) Loss on mark to market of hedging instruments.......................................................................
(iv) Others...............................................................................................................................................
154.85
16.95
13.55
88.34
149.00
12.95
25.79
51.53
273.69
239.27
Net Deferred Tax Liabilities....................................................................................................................
889.65
614.85
Other Long Term Liabilities :

Rupees crores
Trade Payables.........................................................................................................................................
Others.......................................................................................................................................................
2014
2013
31.13
555.14
35.57
379.83
586.27
415.40

Others include dealer deposits, advance from customers, payable for investments, gratuity payable and monies adjusted from share capital
and reserves and surplus on account of shares held by ESOP Trust pending transfer to the eligible employees.
7.
Long Term Provisions :

Rupees crores
Provision for Employee Benefits............................................................................................................

Provision for Warranty [Note 32]..........................................................................................................
8.
2014
2013
366.77
143.56
317.85
123.74
510.33
441.59
Short Term Borrowings :

Rupees crores
(A)

(B)

Secured :
Loans and Advances on cash credit account from Banks...........................................................
Unsecured :
Term Loan from Bank.....................................................................................................................
Fixed Deposits.................................................................................................................................
2014
2013
0.05
0.69
54.28
0.35
0.74
54.63
(a) Secured Borrowings :
Loans and Advances on cash credit accounts from the Companys bankers are secured by a first charge on a pari-passu basis on the whole
of the current assets of the Company namely inventories, book debts, outstanding monies, receivables, claims etc. both present and
future.

(b) Unsecured Borrowings :
Term loan from bank was pre shipment credit carrying margin of 60 basis points over six month USD Libor and was repayable within a
year from the date of availment of loan.

Fixed deposits are for a period of one year and carry an interest rate of 8.50%.
109
9.
Trade Payables :
Rupees crores
Acceptances..............................................................................................................................................
Trade Payables Micro and Small enterprises.....................................................................................
Trade Payables Other than Micro and Small enterprises.................................................................
2014
2013
747.85
112.59
5,208.36
767.30
65.50
4,746.91
6,068.80
5,579.71

Micro, Small and Medium enterprises have been identified by the Company on the basis of the information available. Total outstanding dues
of Micro and Small enterprises, which are outstanding for more than the stipulated period are given below :
Rupees crores
2014
2013
Principal...........................................................................................................................................
35.65
15.28

Interest on the above ....................................................................................................................
(b) Interest paid in terms of Section 16 of the Act, along with the amount of payment made
to the supplier beyond the appointed day during the year

Principal paid beyond the appointed date..................................................................................

Interest paid in terms of Section 16 of the Act..........................................................................
(c) Amount of interest due and payable for the period of delay on payments made beyond
the appointed day during the year .............................................................................................
(d) Further interest due and payable even in the succeeding years, until such date when the
interest due as above are actually paid to the small enterprises ............................................
(e) Amount of interest accrued and remaining unpaid as at 31st March.......................................
0.45
0.80
645.15
2.95
238.97
3.14
3.08
2.47
1.16
4.69
0.19
3.46
(a) Dues remaining unpaid as at 31st March
10. Other Current Liabilities :

Rupees crores
2014
2013
Current Maturities of Long Term Borrowings......................................................................................
300.17
261.52
Advance from Customers.......................................................................................................................
255.91
215.07
Interest accrued but not due on borrowings......................................................................................
23.78
25.30
Dividend Payable.....................................................................................................................................
12.43
11.83
Unclaimed Matured Deposits.................................................................................................................
0.43
0.70
Others.......................................................................................................................................................
540.84
537.75
1,133.56
1,052.17
Others mainly include capital creditors, government dues and taxes payable, gratuity payable and salary deductions payable.
There are no amounts due and outstanding to be credited to the Investor Education and Protection Fund.
11. Short Term Provisions :

Rupees crores
2014
110
2013
Provision for Employee Benefits............................................................................................................
148.62
120.47
Provision for Warranty [Note 32]..........................................................................................................
194.98
196.65
Proposed Dividend..................................................................................................................................
862.25
798.17
Provision for Tax on Proposed Dividend..............................................................................................
103.56
92.98
Provision for Taxation.............................................................................................................................
254.28
255.61
1,563.69
1,463.88
125.35
0.01
65.39
184.54
802.76
927.85
16.05
9.47
14.72
14.73
46.64
66.66
61.16
1,137.57
1,197.76
139.27
141.45
63.34
63.34
1,338.49
1,161.51
6,354.12
5,468.74
69.51
65.12
148.16
142.63
56.82
56.82
226.45
189.10
8,396.16
7,288.71
Land Freehold.................
Land Leasehold..............
Buildings.............................
Plant and Equipment........
Office Equipment..............
Furniture and Fixtures......
Aircraft...............................
Vehicles...............................
119.44
80.85
0.13
0.37
0.86
0.02
94.34
76.57
23.74
4.26
Other
adjustments
during the
year
38.60
113.83
16.27
21.84
54.87
135.67
4.34
102.41
474.01
361.46
131.27
112.89
609.62
576.76
Technical Knowhow..........
Development Expenditure
Internally Generated........
Computer Software..........
Others.................................
Other
adjustments
during the
year
252.49
39.33
15.16
198.00
Acquisition
through
Scheme of
Arrangement
192.79
102.81
87.32
3.46
103.71
1.28
1.76
98.07
Deductions
and
adjustments
during the
year
87.20
171.16
30.46
23.81
1.89
9.20
1.09
5.10
50.76
119.04
3.00
11.82
2.19
Deductions
and
adjustments
during the
year
724.19
609.62
39.33
75.38
131.27
606.90
474.01
2.58
4.34
Cost/
Professional
valuation as at
31st March,
2014
10,071.93
8,396.16
274.00
226.45
103.46
56.82
165.19
148.16
87.04
69.51
7,689.00
6,354.12
1,425.28
1,338.49
63.34
63.34
264.62
139.27
Cost/
Professional
valuation as at
31st March,
2014
402.82
336.02
184.54
169.61
3.93
16.63
40.98
163.46
127.75
286.26
159.79
113.47
75.95
0.52
0.88
Amortisation
for
2013-2014
678.85
541.26
34.64
28.17
5.37
3.19
9.74
8.71
6.48
5.10
582.17
461.64
39.77
33.78
0.68
0.67
Depreciation
for
2013-2014
3.09
100.28
Accumulated
Amortisation
upto 31st
March, 2013
3,645.10
3,236.10
89.65
78.56
6.83
3.64
69.51
66.82
26.87
25.54
3,193.35
2,833.59
253.20
222.93
5.69
5.02
Accumulated
Depreciation
upto 31st
March, 2013
157.11
29.50
13.83
113.78
Accumulated
Amortisation/
adjustment on
Assets acquired
through Scheme of
Arrangement
102.87
3.22
0.92
0.34
98.36
0.03
Accumulated
Depreciation/
adjustment on
Assets acquired
through Scheme of
Arrangement
190.93
102.81
87.08
3.46
102.82
1.28
1.03
98.07
Deductions
and
adjustments
of
Amortisation
61.19
132.26
18.54
17.08
0.98
6.02
0.84
3.77
40.70
101.88
0.13
3.51
Deductions
and
adjustments
of
Depreciation
553.54
402.82
33.43
56.85
113.47
460.68
286.26
2.58
3.09
Accumulated
Amortisation
upto 31st
March, 2014
4,365.63
3,645.10
108.97
89.65
12.20
6.83
79.19
69.51
32.85
26.87
3,833.18
3,193.35
292.87
253.20
6.37
5.69
Accumulated
Depreciation
upto 31st
March, 2014
Rupees crores
170.65
206.80
5.90
18.53
17.80
146.22
187.75
1.25
Net Balance as
at 31st March,
2014
Rupees crores
5,706.30
4,751.06
165.03
136.80
91.26
49.99
86.00
78.65
54.19
42.64
3,855.82
3,160.77
1,132.41
1,085.29
56.97
57.65
264.62
139.27
Net Balance as
at 31st March,
2014
Notes :
(a) Other adjustments during the year include difference in exchange and interest capitalised.
(b) Buildings include Rs. * crores (2013 : Rs. * crores) being the value of shares in co-operative housing societies.
(c) (i) The depreciation charge for the year excludes an amount of Rs. 0.05 crores (2013 : Rs. 0.06 crores), representing depreciation on the increase due to revaluation of Land and Buildings transferred
from the Revaluation Reserve.

(ii) The Revaluation Reserve is also adjusted for an amount of Rs. Nil crores (2013 : Rs. 0.01 crores) in respect of revalued Land and Buildings sold/demolished during the year.

(iii) The net credit to the Statement of Profit and Loss consequent to the above adjustments to the Revaluation Reserve is Rs. 0.05 crores (2013 : Rs. 0.07 crores).
(d) Intangible - Others include congeries of rights etc.
Current year figures are in bold.
Additions
during the
year
Cost/
Professional
valuation as
at 31st March,
2013
Description of Assets
505.96
11.22
3.83
1.71
488.54
0.66
Acquisition
through
Scheme of
Arrangement
(B) Intangible Assets (acquired, unless otherwise stated) :
Additions
during the
year
Cost/
Professional
valuation as
at 31st March,
2013
(A) Tangible Assets :
12. Fixed Assets :
111
13. (A) Non Current Investments : (contd.)

Face Value
Per Unit
(Rupees)
2014
2013
Long Term
Long Term
Number
Rupees crores
Number
Rupees crores
Investments (At Cost, unless otherwise specified) :

Investments in Equity Instruments (Trade and fully paid-up unless
otherwise specified) :
Unquoted
(i)
In Subsidiary Companies

Mahindra Engineering and Chemical Products Limited............................

Mahindra Intertrade Limited [including 1,50,00,000 shares partly
paid-up Rs. 3 per share]................................................................................

Mahindra USA Inc. ........................................................................................

Mahindra Gujarat Tractor Limited................................................................

Mahindra Shubhlabh Services Limited.........................................................

Mahindra First Choice Wheels Limited........................................................

Bristlecone Limited ........................................................................................

Mahindra & Mahindra South Africa (Proprietary) Limited.......................

Mahindra Engineering Services Limited......................................................

Mahindra Overseas Investment Company (Mauritius) Limited..................

Mahindra Gears & Transmissions Private Limited ......................................

Mahindra Automobile Distributor Private Limited ...................................

Mahindra Trucks and Buses Limited (formerly known as Mahindra
Navistar Automotives Limited) (previous year face value per unit
Rs. 10) [Note 37].............................................................................................

Mahindra Vehicle Manufacturers Limited ..................................................

Mahindra Hinoday Industries Limited ........................................................

Mahindra Logistics Limited...........................................................................
Mahindra Heavy Engines Private Limited (formerly known as Mahindra
Navistar Engines Private Limited).................................................................

Mahindra Aerospace Private Limited...........................................................

Mahindra First Choice Services Limited.......................................................

Mahindra Gears International Limited........................................................

Mahindra Holdings Limited...........................................................................

Mahindra Consulting Engineers Limited.....................................................

NBS International Limited.............................................................................

Mahindra Two Wheelers Limited.................................................................

Mahindra Automotive Australia Pty. Limited.............................................

Defence Land Systems India Private Limited..............................................

Mahindra Namaste Private Limited .............................................................

Mahindra Reva Electric Vehicles Private Limited .......................................

Mahindra Defence Naval Systems Private Limited.....................................

Mahindra Defence Systems Limited.............................................................

Mahindra Investments (India) Private Limited [Note 38(a)].....................

Mahindra Sanyo Special Steel Private Limited............................................

Mahindra 'Electoral Trust' Company............................................................

Mahindra Investments (International) Private Limited..............................
+
+
+
+
+
+
+
+
+
+
+
+
10
4,39,98,462
391.82
3,59,98,462
311.82
10
US $ 0.10
10
10
10
US $ 0.001
ZAR 1
10
US $ 1
10
10
2,71,00,006
14,00,00,000
16,83,218
89,12,400
3,47,77,255
42,22,250
5,20,00,000
81,26,218
8,79,02,525
7,40,000
16.60
66.37
3.55
9.08
47.44
19.26
28.54
59.96
422.30
0.31
2,71,00,006
14,00,00,000
16,83,218
49,12,400
3,47,77,255
42,22,250
5,20,00,000
81,26,218
8,16,63,925
1,15,86,361
7,40,000
16.60
66.37
3.55
5.08
47.44
19.26
28.54
59.96
387.11
55.75
0.31
0.20
10
10
10
1,14,79,25,600
96,22,50,000
5,39,06,123
74.12
962.25
53.91
1,14,79,25,600
96,22,50,000
3,02,54,052
5,76,99,900
893.91
962.25
167.95
57.70
10
10
10
EURO 1
10
10
10
10
AUD 1
10
10
10
10
10
10
10
10
10
32,80,00,000
12,36,97,041
13,87,70,000
2,30,00,001
6,12,49,999
11,51,000
50,490
1,11,35,11,969
45,75,000
6,29,00,000
2,39,43,542
42,53,467
8,00,56,580
51,00,000
50,000
50,000
259.28
231.64
138.77
153.13
61.25
1.25
5.07
1,113.51
21.16
62.90
340.16
30.65
56.44
214.33
0.05
0.05
26,50,00,000
9,75,15,249
5,70,00,000
2,07,00,001
4,75,49,999
11,51,000
50,490
81,72,99,975
45,75,000
6,29,00,000
10,000
1,83,28,157
1,50,31,330
23,79,900
196.28
180.48
57.00
137.82
47.55
1.25
5.07
817.30
21.16
62.90
0.01
267.16
15.03
2.38
4,845.15
4,894.99
(ii) In Associate Companies

Officemartindia.com Limited........................................................................
10
7,49,997
0.22
7,49,997
0.22
Mahindra Construction Company Limited..................................................

Mega One Stop Farm Services Limited........................................................
Mriyalguda Farm Solution Limited...............................................................
Kota Farm Services Limited...........................................................................
Mahindra & Mahindra Contech Limited......................................................
PSL Media & Communications Limited........................................................
10
10
10
10
10
5
9,00,000
3,51,000
3,37,500
2,73,420
35,000
19,750
0.97
0.35
0.34
0.27
0.04
0.01
9,00,000
3,51,000
3,37,500
2,73,420
35,000
19,750
0.97
0.35
0.34
0.27
0.04
0.01
2.20
112
2.20

Face Value
Per Unit
(Rupees)
2014
2013
Long Term
Long Term
Number
Rupees crores
Number
Rupees crores
(iii) In Joint Venture Company

Mahindra Sona Limited.................................................................................
10
13,10,000
1.64
13,10,000
1.64
1.64
1.64
(iv) In Other Companies (Non-trade and fully paid-up unless otherwise
specified)

Montreal Engineering International Limited..............................................
Machinery Manufacturers Corporation Limited.........................................
100
312
312
10
8,55,646
0.94
8,55,646
0.94
Judricks (India) Private Limited.....................................................................
10
1,00,000
0.10
1,00,000
0.10
NTTF Industries Limited.................................................................................
10
75,000
0.15
75,000
0.15
Indian NGOs.com Private Limited.................................................................
10
50,000
0.06
50,000
0.06
Sixth Sense Studios Private Limited ............................................................
10
20,000
0.02
20,000
0.02
Utility Engineers (India) Limited...................................................................
10
2,85,000
0.28
2,85,000
0.28
Business Standard Limited.............................................................................
10
5,00,000
0.09
5,00,000
0.09
New Tirupur Area Development Corporation Limited..............................
10
75,00,000
7.50
75,00,000
7.50
Triton Overwater Transport Agency Limited..............................................
10
4,98,000
0.58
4,98,000
0.58
Hadoti Krishi Vihar Private Limited..............................................................
100
1,000
0.01
1,000
0.01
Harsolia Agri Sales and Services Private Limited........................................
10
30,000
0.03
30,000
0.03
Yadgiri Farm Solutions Private Limited........................................................
100
200
200
Srinivasa Farm Solutions Private Limited.....................................................
10
2,000
2,000
Farm Vision Agri-Tech Private Limited.........................................................
10
15,180
0.01
15,180
0.01
Sowbhagya Krishi Vikas Private Limited......................................................
10
20,000
0.02
20,000
0.02
Bhuvi Care Private Limited............................................................................
100
1,800
0.02
1,800
0.02
Richfield Crop Solutions India Private Limited...........................................
10
6,000
0.01
6,000
0.01
Covai Crop Care India Private Limited ........................................................
10
6,000
0.01
6,000
0.01
Manjara Agri Tech Private Limited...............................................................
10
8,000
0.01
8,000
0.01
10
19,45,867
1.95
19,45,867
1.95
Wardha Power Company Limited : Class 'A' Equity Shares (Trade Investment)...
Others..............................................................................................................
+
@
11.79
11.79
Quoted
(i)
Mahindra Lifespace Developers Limited......................................................
10
2,08,46,126
276.94
2,08,46,126
276.94
Mahindra & Mahindra Financial Services Limited .....................................
29,12,07,660
150.91
29,12,07,660
150.91
4,88,25,609
854.15
49.26
1,64,66,789
49.26

Mahindra CIE Automotive Limited (formerly known as Mahindra
Forgings Limited)............................................................................................
10
+
10
1,64,66,789
10
6,65,85,642
27.46
6,65,85,642
27.46
KRW 5000
9,99,64,502
2,133.94
8,54,19,047
1,739.62
EPC Industrie Limited.....................................................................................
10
1,51,44,433
77.75
1,51,44,433
77.75
Swaraj Automotives Limited.........................................................................
10
17,06,925
18.28
17,06,925
18.28
Mahindra Ugine Steel Company Limited.....................................................
Mahindra Holidays & Resorts India Limited ...............................................
Ssangyong Motor Company (Listed on a Stock Exchange outside India)
2,734.54
3,194.37
113

Face Value
Per Unit
(Rupees)
2014
2013
Long Term
Long Term
Number
Rupees crores
Number
Rupees crores
(ii) In Associate Companies

Swaraj Engines Limited..................................................................................
10
41,26,417
1.63
41,26,417
1.63
Mahindra Composites Limited......................................................................
10
13,41,203
2.90
10
2,96,109
5.18
10
6,06,76,252
644.68
6,06,76,252
644.68

Mahindra CIE Automotive Limited (formerly known as Mahindra
Forgings Limited)............................................................................................

Tech Mahindra Limited..................................................................................
651.49
649.21
(iii) In Other Companies (Non-trade and fully paid-up)

Jardine Henderson Limited...........................................................................
100
25
25
IDBI Bank Limited...........................................................................................
10
2,85,440
2.29
2,85,440
2.29
Investments in Equity Instruments........................................................................
2.29
2.29
8,249.10
8,756.49
Investments in Preference Shares (Trade and fully paid-up unless otherwise

specified) :
Unquoted
(i)
Series A Preference Shares : Bristlecone Limited......................................
US $ 0.001
70,00,000
31.72
70,00,000
31.72
Series B Preference Shares : Bristlecone Limited......................................
US $ 0.001
69,20,000
15.13
69,20,000
15.13
Mahindra Gears International Limited........................................................
EURO 1
23,00,000
15.31
46.85
62.16
(ii) In Associate Company

10.00% Non-Cumulative Redeemable Participating Preference Shares :
Mahindra Construction Company Limited..................................................
100
5,40,000
5.40
5,40,000
5.40
(iii) In Other Companies (Non-trade and fully paid-up unless otherwise
specified)

4.00% Tax-free Cumulative Preference Shares : Machinery
Manufacturers Corporation Limited............................................................
11.00% Redeemable Preference Shares : Sixth Sense Studios Private

Limited.............................................................................................................
8.00% Non Cumulative Redeemable Preferred Stock : Prana Holdings
Inc. USA............................................................................................................

0.01% Class A Redeemable Preference Shares : Wardha Power
Company Limited (Trade Investment)..........................................................
Investments in Preference Shares.........................................................................
114
5.40
5.40
100
2,296
0.02
2,296
0.02
100
1,78,000
1.78
1,78,000
1.78
23,00,423
13.83
23,00,423
13.83
24,54,133
2.45
24,54,133
2.45
10
18.08
18.08
70.33
85.64

Face Value
Per Unit
(Rupees)
2014
2013
Long Term
Long Term
Number
Rupees crores
Number
Rupees crores
Investments in Government/Trust Securities :

Unquoted, other than Trade
(i)
Government Securities
6 Years National Savings Certificates...........................................................
12,000^
13,000^
*
*
(ii) Trust Securities

Sunrise Initiatives Trust..................................................................................
107.34
103.12
M&M Benefit Trust.........................................................................................
1,459.77
1,459.77
Mahindra World Motor Driving School Trust.............................................
0.01
0.01
M&M Fractional Entitlement Trust...............................................................
0.01
0.01
1,567.13
1,562.91
1,567.13
1,562.91
Investments in Government/Trust Securities.......................................................

Investments in Debentures/Bonds (Trade and fully paid-up unless otherwise
specified) :
Unquoted
(i)
In Subsidiary Company
7.00% Bond Ssangyong Motor Company....................................................
KRW 4,77,02,38,250
20
465.29
465.29
(ii) In Other Company

0.50% Bond The East India Clinic Limited (Non-trade Investment).........
100
13
13
Investments in Debentures/Bonds.......................................................................
465.29
Total Non Current Investments (Gross)................................................................
9,886.56
10,870.33
Less : Provision for diminution in value of investments.....................................
(98.83)
(298.83)
Total Non Current Investments (Net)....................................................................
9,787.73
10,571.50
Other Disclosures
Aggregate amount of quoted investments (Gross)...................................
3,388.32
3,845.87

Market Value of quoted investments (includes Rs. 4,892.66 crores
(2013 : Rs. 2,466.21 crores) in respect of investment listed on a Stock
Exchange outside India)................................................................................
26,208.49
17,677.77
(ii) Aggregate amount of unquoted investments (Gross)...............................
6,498.24
7,024.46
(i)
Notes :
@ Shares (unquoted) in other companies comprise :
# The United Spices Importers Limited (Equity B Shares).......................
100
21
21
# Engineering & Metal Works, Tehran........................................................
Rials 16,667
74
74
*
#
+
^
*
Written off to Re. 1

Equity investments in these companies carry certain restrictions on transfer of shares due to contractual or regulatory restrictions
Total Face Value
denotes amounts less than Rs. 50,000
115
13. (B) Current Investments (At Cost, unless otherwise specified) : (contd.)
Face Value Per
Unit (Rupees)
2014
Number
2013
Rupees crores
Number
Rupees crores
Investments in Equity Instruments (Non-trade and fully paid-up) :

Quoted
In Other Company

Power Trading Corporation of India Limited..............................................
10
900
900
Investments in Equity Instruments........................................................................
*
*
Investments in Government Securities :

Quoted
(i) Government of India Securities....................................................................
100
1,92,700
1.91
192,700
(ii) 1.44% Inflation Indexed Government Stock, 2023....................................
100
10,00,000
10.33
1.91
Less : Adjustment of cost as lower than fair value, by category.......................
12.24
(1.02)
1.91
(0.01)
Investments in Government Securities ................................................................
11.22
1.90
Investments in Debentures/Bonds (Non-trade and fully paid-up) :

Quoted
In Others

6.70% Bond Indian Railway Finance Corporation Limited........................






8.20% Bond National Highway Authority of India....................................

6.85% Bond India Infrastructure Finance Company Limited....................

1,00,000
1,00,000
1,00,000
1,00,000
1,00,000
1,00,000
1,000
1,00,000
500
1,000
1,000
500
500
1,000
1,23,619
Less : Adjustment of cost as lower than fair value, by category.............
Investments in Debentures/Bonds........................................................................
5.00
10.00
10.00
5.00
5.00
10.00
12.37
500
1,000
1,000
500
500
1,000
1,23,619
2,085
5.00
10.00
10.00
5.00
5.00
10.00
12.37
20.95
57.37
78.32
(2.42)
(0.09)
54.95
78.23
54.95
78.23
Investments in Mutual Funds :

Quoted

L & T Mutual Fund - FMP - VII (January 507D A) - Dividend Payout...
10
1,00,00,000
10.00
1,00,00,000
10.00
10.00
10.00
Unquoted
Axis Mutual Fund - Banking Debt Fund - Direct Plan - Daily DividendReinvestment...................................................................................................
Axis Mutual Fund - Liquid Fund - Growth .................................................
1,000
1,000
Baroda Pioneer Mutual Fund -Treasury Advantage Fund - Plan B Daily

Dividend - Reinvestment ..............................................................................
1,000
1,00,050
10.06
100
85,20,343
175.00
10
19,27,971
2.00
10
2,44,06,639
25.20
10
4,96,054
2.00
1,000
9,16,369
175.00
10
2,49,64,206
25.17
1,000
7,82,258
100.00
Birla Sun Life Mutual Fund - Cash Plus - Growth - Regular Plan ............

BNP Paribas Mutual Fund - Government Securities Fund Direct
Growth ............................................................................................................

Deutsche Mutual Fund - Money Plus Fund - Direct Plan - Daily
Dividend - Reinvestment...............................................................................
DSP BlackRock Mutual Fund - Government Securities Fund - Direct
Plan - Growth .................................................................................................

Franklin Templeton Mutual Fund - Treasury Management Account
Super Institutional Plan - Daily Dividend Reinvestment............................

HDFC Mutual Fund - Floating Rate Income Fund - Short Term
Plan - Wholesale Option - Direct Plan - Dividend Reinvestment.............
HSBC Mutual Fund - Cash Fund - Growth ..................................................
* denotes amount less than Rs. 50,000
116
251,304
10,56,901
25.26
150.00
Face Value Per
Unit (Rupees)
2014
Number
2013
Rupees crores
Number
Rupees crores
ICICI Prudential Mutual Fund - Ultra Short Term - Direct Plan - Daily
Dividend...........................................................................................................
10
2,49,95,203
25.26
ICICI Prudential Mutual Fund - Long Term Gilt Fund - Direct Plan Growth.............................................................................................................
10
4,74,702
2.00
IDBI Mutual Fund - Ultra Short Term Fund - Direct Plan - Daily Dividend
- Reinvestment................................................................................................
1,000
98,497
10.05

IDFC Mutual Fund - Money Manager Fund - Treasury Plan - Daily
Dividend - (Direct Plan).................................................................................
10
2,49,74,824
25.15
JM Financial Mutual Fund - Floater Short Term Fund (Direct) - Daily
Dividend - Reinvestment...............................................................................
10
99,80,359
10.07
Kotak Mahindra Mutual Fund - Gilt (Investment Regular) - Direct Plan

- Growth..........................................................................................................
10
4,62,865
2.00
L & T Mutual Fund - Ultra Short Term Fund Direct Plan - Daily Dividend
Reinvestment Plan .........................................................................................
10
2,43,96,488
25.19
Pramerica Mutual Fund - Short Term Floating Rate Fund- Direct Plan Daily Dividend - Reinvestment ....................................................................
1,000
1,00,554
10.07

Principal Mutual Fund - Cash Management Fund - Regular Plan
Growth ............................................................................................................
1,000
2,89,235
36.00
Religare Invesco Mutual Fund - Liquid Fund - Growth Plan ....................
1,000
8,51,587
150.00
Religare Invesco Mutual Fund - Ultra Short Term Fund - Direct Plan
Daily Dividend ................................................................................................
1,000
2,50,702
25.22
Sundaram Mutual Fund - Ultra Short Term Fund - Direct Plan - Daily
Dividend...........................................................................................................
10
1,00,23,743
10.07
UTI Mutual Fund - Gilt Advantage Fund - LTP - Direct Plan - Growth....
10
7,78,507
2.00
UTI Mutual Fund - Banking & PSU Debt Fund - Direct Plan - Dividend
Reinvestment...................................................................................................
10
2,50,30,174
25.17
Axis Mutual Fund - Banking Debt Fund Daily Dividend - Reinvestment.
1,000
2,51,320
25.16
Birla Sun Life Mutual Fund - Cash Plus - Daily Dividend - Regular Plan
- Reinvestment................................................................................................
100
1,07,51,355
107.72
Birla Sun Life Mutual Fund - Floating Rate Long Term - Daily Dividend
- Regular Plan - Reinvestment .....................................................................
100
10,01,451
10.03
Canara Robecco Mutual Fund - Treasury Advantage Fund - Regular

Daily Dividend - Reinvestment ....................................................................
1,000
81,783
10.14
Deutsche Mutual Fund - Ultra Short Term Fund - Institutional Plan Daily Dividend - Reinvestment......................................................................
10
1,01,19,020
10.14
DSP BlackRock Mutual Fund - Strategic Bond Fund - Institutional Plan

- Daily Dividend - Reinvestment...................................................................
1,000
1,02,076
10.28
Franklin Templeton Mutual Fund - India Ultra Short Bond Fund - Super
Institutional Plan - Daily Dividend Reinvestment.......................................
10
1,01,23,811
10.15
Franklin Templeton Mutual Fund - Templeton India Low Duration Fund

- Quarterly Dividend Reinvestment..............................................................
10
97,67,318
10.14
HDFC Mutual Fund - Liquid Fund - Dividend - Daily Reinvestment ........
10
9,81,59,421
100.10
HDFC Mutual Fund - Floating Rate Income Fund - Short Term Plan Wholesale Option - Dividend Reinvestment - Daily .................................
10
2,49,26,612
25.13
ICICI Prudential Mutual Fund - Floating Rate - Regular Plan - Daily

100
10,12,598
10.14

ICICI Prudential Mutual Fund - Ultra Short Term - Regular Plan Growth ............................................................................................................
10
84,91,127
10.00
IDBI Mutual Fund - Ultra Short Term Fund-Regular Plan - Daily Dividend
- Reinvestment ...............................................................................................
1,000
1,00,235
10.03
JM Financial Mutual Fund - Floater Short Term Fund - Daily Dividend
Option - Reinvestment ..................................................................................
10
1,09,34,189
11.03
JM Financial Mutual Fund - Money Manager Fund - Super Plus Plan Daily Dividend Option - Reinvestment........................................................
10
2,16,80,248
21.69
JPMorgan Mutual Fund - India Treasury Fund Super Institutional Daily

Dividend Reinvestment .................................................................................
10
1,01,40,577
10.15
117
Face Value Per
Unit (Rupees)
2014
Number
2013
Rupees crores
Number
Rupees crores

Kotak Mahindra Mutual Fund - Flexi Debt Scheme Plan A - Daily
10
99,88,360
Kotak Mahindra Mutual Fund - Floater Long Term - Daily Dividend Reinvestment .................................................................................................
10
1,00,60,712
10.14
Kotak Mahindra Mutual Fund - Floater Long Term - Growth .................
10
53,83,551
10.00
Reliance Mutual Fund - Money Manager Fund - Daily Dividend Plan

-Dividend Reinvestment ...............................................................................
1,000
1,00,639
10.08
Religare Invesco Mutual Fund - Short Term Fund - Daily Dividend Reinvestment...................................................................................................
10
2,55,71,122
25.59
Religare Invesco Mutual Fund - Ultra Short Term Fund - Daily Dividend
- Reinvestment ...............................................................................................
1,000
2,51,834
25.23
SBI Mutual Fund - Magnum Income Fund FR Long Term - Regular Plan
- Daily Dividend - Reinvestment...................................................................
10
1,00,05,217
10.08
SBI Mutual Fund - Magnum Insta Cash Fund Liquid Floater - Regular
Plan - Daily Dividend - Reinvestment .........................................................
1,000
99,488
10.05
Sundaram Mutual Fund - Ultra Short Term Fund - Regular Plan - Daily
Dividend Reinvestment..................................................................................
10
3,52,30,922
35.36
UTI Mutual Fund - Treasury Advantage Fund - Institutional Plan - Daily

Dividend Reinvestment..................................................................................
1,000
1,01,489
10.15
UTI Mutual Fund - Floating Rate Fund - STP - Regular Plan - Direct Plan
- Daily Dividend Reinvestment ....................................................................
1,000
2,33,624
1,047.94
Investments in Mutual Funds.................................................................................
10.03
25.16
573.90
Other Investments :
Certificate of Deposits
Unquoted

Allahabad Bank...............................................................................................
1,00,000
10,000
98.44
2,500
24.61
Andhra Bank...................................................................................................
1,00,000
10,000
98.91
7,500
74.10
Bank of Maharashtra.....................................................................................
1,00,000
10,000
98.37
Corporation Bank ..........................................................................................
1,00,000
5,000
49.22
5,000
47.58
Indian Overseas Bank ....................................................................................
1,00,000
5,000
49.41
Oriental Bank of Commerce..........................................................................
1,00,000
2,500
24.57
5,000
46.59
State Bank of Mysore ...................................................................................
1,00,000
5,000
49.32
Axis Bank Limited...........................................................................................
1,00,000
5,000
48.74
Bank of Baroda...............................................................................................
1,00,000
7,500
69.80
Central Bank....................................................................................................
1,00,000
5,000
46.43
HDFC Bank.......................................................................................................
1,00,000
2,500
23.92
State Bank of Bikaner & Jaipur.....................................................................
1,00,000
7,500
71.72
State Bank of Hyderabad..............................................................................
1,00,000
5,000
49.88
State Bank of Travencore...............................................................................
1,00,000
5,000
46.85
Syndicate Bank................................................................................................
1,00,000
5,000
47.71
Less : Adjustment of cost as lower than fair value, by category.............
468.24
597.93
(0.23)
Investments in Certificate of Deposits.................................................................
468.01
597.93
Total Current Investments......................................................................................
1,592.12
1,261.96
90.23
Other Disclosures
(i)
Aggregate amount of quoted investments (Gross)...............................
79.61
Market Value of quoted investments...................................................
76.17
90.13
(ii) Aggregate amount of unquoted investments (Gross)...........................
1,516.18
1,171.83
(iii) Aggregate excess of cost over fair value, by category..........................
3.67
0.10
118
14. Long Term Loans and Advances :

Rupees crores
2014
2013
(A) Capital Advances :

Unsecured, considered good .....................................................................
Doubtful........................................................................................................

472.85
2.86
Less : Provision for doubtful capital advances ........................................
368.54
1.69
475.71
2.86
370.23
1.69
472.85
368.54
(B) Security Deposits :

Doubtful........................................................................................................

42.91
0.19
Less : Provision for doubtful security deposits.........................................
35.89
0.19
43.10
0.19
36.08
0.19
42.91
35.89
(C) Loans and Advances to Related Parties :

Doubtful........................................................................................................

252.02
10.00
Less : Provision for doubtful loans and advances to related parties.....
237.12
10.00
262.02
10.00
247.12
10.00
252.02
237.12
(D) Other Loans and Advances :

Doubtful........................................................................................................

2,250.34
0.04
Less : Provision for doubtful other loans and advances.........................
1,445.92
1.60
2,250.38
0.04
1,447.52
1.60
2,250.34
1,445.92
3,018.12
2,087.47
(a) Long Term Loans and Advances to Related Parties includes :
(i) Share Application Money pending allotment Rs. 2.22 crores (2013 : Rs. 27.17 crores) to subsidiaries.
(ii)
Fixed/Call deposits with/loans to limited companies Rs. 217.11 crores (2013 : Rs. 197.02 crores) including Rs. 217.11 crores
(2013 : Rs. 197.02 crores) to subsidiary companies.
(iii) Capital Advances of Rs. 19.01 crores (2013 : Rs. Nil crores).
(b) Other Loans and Advances includes :
(i) Payment towards income-tax and surtax Rs. 448.84 crores (2013 : Rs. 388.91 crores).
(ii) MAT Credit entitlement Rs. 574.15 crores (2013 : Rs. NIL crores).
(iii) VAT receivable, other recoverable expenses and advances to employees.
15. Other Non-Current Assets :

Rupees crores
2014
2013
(i) Export Benefits Receivable............................................................................................................
81.85
21.16
(ii) Others...............................................................................................................................................
6.64
8.69
88.49
29.85
119
16. Inventories :
Rupees crores
Raw Materials and Bought-out Components [includes in transit Rs. 60.40 crores
(i)
(2013 : Rs. 102.01 crores)]..............................................................................................................
(ii) Work-in-Progress.............................................................................................................................
(iii) Finished Products Produced .........................................................................................................
(iv) Stock-in-Trade [includes in transit Rs. 45.72 crores (2013 : Rs. 118.28 crores)]........................
(v) Manufactured Components...........................................................................................................
(vi) Stores and Spares ..........................................................................................................................
(vii) Tools.................................................................................................................................................
2014
2013
816.72
113.42
1,249.49
410.94
129.52
46.16
37.38
798.62
80.69
892.39
427.80
144.44
39.03
36.80
2,803.63
2,419.77
17. Trade Receivables :

Rupees crores
2014
(A) Outstanding for a period exceeding six months from the date they
are due for payment

Unsecured, considered good......................................................................
Doubtful........................................................................................................
2013
52.11
70.37
65.80
67.17
Less : Provision for doubtful trade receivables........................................
122.48
70.37
132.97
67.17
(B) Others Unsecured, considered good......................................................
52.11
2,457.73
65.80
2,142.55
2,509.84
2,208.35
18. Cash and Bank Balances :

Rupees crores
2014
2013
(A) Cash and Cash Equivalents :

Balances with Banks :

(i) On Current Accounts .........................................................................
(ii) Fixed Deposits with original maturity less than 3 months.............
Cheques, drafts on hand............................................................................

Cash on hand ..............................................................................................
476.91
695.62
649.22
120.00
1,172.53
532.34
0.70
769.22
394.03
0.71
1,705.57
1,163.96
12.52
11.93
(B) Other Bank Balances :

120
Earmarked balances with banks ...............................................................

(i) On Margin Accounts ..........................................................................
(ii) Fixed Deposits with original maturity greater than 3 months*....
7.60
1,224.70
1.30
604.22
1,232.30
605.52
1,244.82
617.45
2,950.39
1,781.41
* Includes deposits of Rs. 20.00 crores (2013 : Rs. 20.00 crores) with maturity greater than 12 months from Balance Sheet date
19. Short Term Loans and Advances :

Rupees crores
2014
2013
(A) Loans and Advances to Related Parties :

316.47
115.25
Doubtful........................................................................................................
10.61
10.61
Less : Provision for doubtful loans and advances to related parties.....
327.08
125.86
10.61
10.61
316.47
115.25
(B) Other Loans and Advances :

629.36
648.15
Doubtful........................................................................................................
29.63
31.14
Less : Provision for doubtful other loans and advances ........................
658.99
679.29
29.63
31.14
629.36
648.15
945.83
763.40
(a) Loans and Advances to Related Parties includes Fixed/Call deposits with/loans to limited companies Rs. 296.92 crores (2013 : Rs. 94.07
crores) including Rs. 292.33 crores (2013 : Rs. 89.48 crores) to subsidiary companies.
(b) Loans and Advances to Related Parties includes loan to Director of Rs. 1.07 crores.
(c) Other Loans and Advances includes MAT Credit entitlement Rs. Nil crores (2013 : Rs. 86.00 crores).
(d) Other Loans and Advances also includes balances with government authorities, advance to suppliers, other recoverable expenses,
deposits and prepaid expenses.
20. Other Current Assets :

Rupees crores
2014
2013
Government Grant receivable................................................................................................................
123.62
165.64
Interest accrued.......................................................................................................................................
83.22
65.91
Hedging Instruments..............................................................................................................................
32.31
Other receivables including export benefits........................................................................................
256.52
281.35
495.67
512.90
Considered Good.....................................................................................................................................
487.11
508.54
Doubtful...................................................................................................................................................
8.56
4.36
495.67
512.90
8.56
4.36
487.11
508.54
Less :
Provision for doubtful other current assets.........................................................................................
121
21. Revenue from Operations :

Rupees crores
2014
2013
Sale of Products....................................................................................................
42,240.60
42,502.27
Sale of Services ....................................................................................................
334.44
372.34
Gross Revenue from Sale of Products and Services (Refer Note A below)...
42,575.04
42,874.61
Other Operating Revenues :

(i) Scrap Sales....................................................................................................
136.65
138.96
(ii) Government Grant and Incentives (including export benefits).............
269.80
287.32
(iii) Others............................................................................................................
138.69
111.76
Less : Excise Duty attributable to products sold..............................................
545.14
538.04
43,120.18
43,412.65
2,611.68
2,971.49
40,508.50
40,441.16
(A) Details of Gross Revenue from Sale of Products and Services :

Rupees crores
2014
2013
17,973.17
17,960.32
(ii) Vehicles Three Wheelers....................................................................................................
877.10
904.15
(iii) Tractors....................................................................................................................................
12,402.57
10,131.91
(iv) Others......................................................................................................................................
1,366.87
1,981.02
32,619.71
30,977.40
7,030.23
9,325.03
(ii) Tractors and Agricultural Implements.................................................................................
185.81
101.23
(iii) Spares*....................................................................................................................................
2,015.50
1,709.35
(iv) Others......................................................................................................................................
389.35
389.26
9,620.89
11,524.87
42,240.60
42,502.27
(i) Annual Maintenance Contracts............................................................................................
196.94
229.82
(ii) Manufacturing Charges.........................................................................................................
26.27
(iii) Others......................................................................................................................................
137.50
116.25
Sale of Services...............................................................................................................................
334.44
372.34
Gross Revenue from Sale of Products and Services...................................................................
42,575.04
42,874.61
Sale of Products :
Manufactured Goods :
(i) Vehicles Four Wheelers......................................................................................................
Traded Goods :
(i) Vehicles Four Wheelers......................................................................................................
Sale of Products..............................................................................................................................
Sale of Services :
* S ale of goods shown consists of purchased and manufactured spares. The bifurcation of sales into purchased and manufactured spares
is not practicable.
122
22. Other Income :

Rupees crores
2014
2013
(a) Interest Income :

32.81
(i) Interest Long Term Investments.....................................................
(ii) Interest Current Investments..........................................................
5.54
6.34
(iii) Interest Others..................................................................................
198.38
97.72
(b) Dividend on investments in subsidiaries...................................................

(c) Dividend on other long term investments...............................................
(d) Dividend on current investments...............................................................
(e) Profit on sale of current investments (Net)..............................................
(f) Profit on sale of tangible assets (Net)......................................................
(g) Others............................................................................................................
33.14
236.73
250.72
47.61
64.42
2.79
115.72
137.20
149.32
33.21
51.78
62.62
10.20
104.84
717.99
549.17
23. Cost of Materials Consumed :

Rupees crores
2014
2013
Opening Stock.........................................................................................................................................
Add : Purchases [including outside processing charges Rs. 566.80 crores (2013 : Rs. 471.93 crores)]
798.62
21,622.69
833.28
20,716.38
Add/(Less) : Stock Transfer as per the Scheme of Arrangement/Business Transfer........................

Less : Closing Stock..................................................................................................................................
22,421.31
25.49
816.72
21,549.66
(1.17)
798.62
21,630.08
20,749.87
(A) Cost of Materials Consumed comprises the following :

Rupees crores
(i) Steel Items, paints and other materials..............................................................................
(ii) Tyres and Tubes......................................................................................................................
(iii) Components other than Tyres and Tubes (including processing charges)......................
(iv) Material handling and transportation charges etc. incurred on the above items not
separately allocable...............................................................................................................
2014
2013
613.75
1,492.06
18,859.71
584.36
1,384.52
18,139.39
664.56
641.60
21,630.08
20,749.87
(B) Value of Imported and Indigenous Raw Materials and Components Consumed^ :
Rupees crores
2014
2013
(i) Imported
................................................................................................................................
628.27
2.90%
708.03
3.41%
(ii) Indigenous..............................................................................................................................
21,001.81
97.10%
20,041.84
96.59%
21,630.08
100.00%
20,749.87
100.00%
^ Includes items used for other than production, amount not ascertained.
123
24. Purchases of Stock-in-Trade :

Rupees crores
2014
2013
8,470.19
(i) Vehicles Four Wheelers...............................................................................................................
6,639.27
(ii) Tractors and Agricultural Implements..........................................................................................
141.26
76.16
(iii) Spares...............................................................................................................................................
953.87
840.23
(iv) Others...............................................................................................................................................
342.52
366.10
8,076.92
9,752.68
25. Changes in Inventories of Finished Goods, Work-in-Progress, Stock-in-Trade and Manufactured Components :
Rupees crores
2014
Opening Stock :
(i) Finished Products Produced........................................................................
(ii) Work-in-Progress..........................................................................................
(iii) Stock-in-Trade...............................................................................................
(iv) Manufactured Components........................................................................
892.39
80.69
427.80
144.44
920.44
99.20
333.73
104.80
1,545.32
Add/(Less) : Stock Transfer as per the Scheme of Arrangement/Business

Transfer
55.66
32.58
1,458.17
(0.16)
88.24
Less : Closing Stock :

(iii) Stock-in-Trade...............................................................................................
(iv) Manufactured Components........................................................................
2013
1,249.49
113.42
410.94
129.52
(0.16)
892.39
80.69
427.80
144.44
1,903.37
1,545.32
(269.81)
(87.31)
Excise duty on changes in inventories of finished goods................................
(4.86)
9.28
Increase in Stock...................................................................................................
(274.67)
(78.03)
Details of Opening and Closing Stock of Work-in-Progress :

Rupees crores
2014
2013
29.88
50.81
34.77
63.59
0.84
80.69
99.20
45.44
67.98
29.88
50.81
113.42
80.69
Opening Stock :
(i) Automotive......................................................................................................................................
(ii) Farm Equipment..............................................................................................................................
(iii) Others...............................................................................................................................................
Closing Stock :
(i) Automotive......................................................................................................................................
(ii) Farm Equipment..............................................................................................................................
124
26. Employee Benefits Expense :

Rupees crores
Salaries, Wages, Bonus etc.....................................................................................................................
Contribution to Provident and other funds.........................................................................................
Employee Stock Compensation Expense [Note 33].............................................................................
Welfare.....................................................................................................................................................
2014
2013
1,749.67
178.63
56.14
179.28
1,524.00
123.03
67.06
152.36
2,163.72
1,866.45
27. Finance Costs :

Rupees crores
Interest Expense.....................................................................................................................................
Discounting Charges..............................................................................................................................
Other Borrowing Costs..........................................................................................................................
2014
2013
191.42
63.60
4.20
131.34
55.65
4.20
259.22
191.19
28. Depreciation and Amortisation Expense :

Rupees crores
Depreciation on Tangible Assets ..........................................................................................................
Amortisation on Intangible Assets........................................................................................................
2014
2013
678.80
184.54
541.20
169.61
863.34
710.81
29. Other Expenses :

Rupees crores
Stores consumed...................................................................................................
Tools consumed....................................................................................................
Power and fuel ....................................................................................................
Rent including lease rentals ...............................................................................
Rates and taxes ...................................................................................................
Insurance...............................................................................................................
Repairs and Maintenance :
Buildings............................................................................................................
Machinery..........................................................................................................
Others................................................................................................................
Advertisement......................................................................................................
Service coupon......................................................................................................
Freight outward...................................................................................................
Sales promotion expenses...................................................................................
Dealer and other sales incentives.......................................................................
Donations and contributions..............................................................................
Excess of carrying cost over fair value of current investments (Net)....................
Excess of carrying cost over fair value of current investments, reversed (Net)...
Provision for doubtful debts/advances (Net) ...................................................
Loss on sale of current investment....................................................................
Miscellaneous expenses.......................................................................................
2014
2013
144.43
38.01
221.35
76.73
27.74
33.40
134.82
37.90
206.39
59.12
25.67
26.45
36.88
168.14
81.61
24.38
141.16
79.21
286.63
312.53
92.39
643.84
218.44
605.61
26.97
3.57
6.09
0.69
1,555.86
244.75
299.24
102.56
553.87
136.34
391.70
26.27
(1.84)
(13.32)
1,294.09
4,294.28
3,524.01
125
29. Other Expenses : (contd.)

(a) Repairs and Maintenance to machinery includes machinery spares consumed Rs. 47.47 crores (2013 : Rs. 41.64 crores) but does not include
items included under Consumption of Raw Materials and Bought-out Components and amounts charged to salaries and wages (amounts
not ascertained).
Value of Imported and Indigenous Spare Parts consumed is as follows :

Rupees crores
(i) Imported.................................................................................................................................
(ii) Indigenous..............................................................................................................................
2014
2013
2.48
5.22%
44.99
94.78%
2.73
6.56%
38.91
93.44%
47.47
100.00%
41.64
100.00%
(b) Miscellaneous Expenses include :
Amounts paid/payable to Auditors (Net of service tax where applicable) :

Rupees crores
(i) Audit Fees...............................................................................................................................

(ii) Taxation Matters....................................................................................................................
(iii) Company Law Matters..........................................................................................................
(iv) Other Services........................................................................................................................
(v) Reimbursement of expenses.................................................................................................
Statutory
Auditors
Cost
Auditors
2.09
1.80
0.29
0.33
*
0.53
1.01
0.02
0.12
0.14
0.01
2.93
3.14
0.12
0.15

Current year figures are in bold.
30. Interest capitalised during the year to capital work-in-progress Rs. 5.94 crores (2013 : Rs. 8.24 crores).
31. Employee Benefits :

General description of defined benefit plans :
Gratuity
The Company operates a gratuity plan covering qualifying employees. The benefit payable is the greater of the amount calculated as per the
Payment of Gratuity Act or the Company scheme applicable to the employee. The benefit vests upon completion of five years of continuous
service and once vested it is payable to employees on retirement or on termination of employment. In case of death while in service, the
gratuity is payable irrespective of vesting. The Company makes annual contribution to the group gratuity scheme administered by the Life
Insurance Corporation of India through its Gratuity Trust Fund.

Post retirement medical
The Company provides post retirement medical cover to select grade of employees to cover the retiring employee and their spouse upto a
specified age through mediclaim policy on which the premiums are paid by the Company. The eligibility of the employee for the benefit as
well as the amount of medical cover purchased is determined by the grade of the employee at the time of retirement.

Post retirement housing allowance
The Company operates a post retirement benefit scheme for a certain grade of employees in which a monthly allowance determined on the
basis of the last drawn basic salary at the time of retirement, is paid to the retiring employee in lieu of housing.
126
Defined benefit plans as per actuarial valuation on 31st March, 2014

Funded Plan
Gratuity
I.
II.
Expense recognised in the Statement of Profit and Loss for the year
ended 31st March
1. Current service cost..............................................................................
2. Interest cost..........................................................................................
3. Expected return on plan assets..........................................................
4. Actuarial (Gain)/Loss............................................................................
5. Total expense included in Employee Benefits Expense...................
6. Actual return on plan assets...............................................................
2014
2013
32.53
38.27
(25.47)
27.11
72.44
32.13
27.04
35.65
(23.95)
10.05
48.79
30.77
0.91
1.28
(0.90)
1.29
0.85
1.18
0.03
2.06
2.08
2.64
(3.04)
1.68
1.74
2.18
3.60
7.52
Present value of defined benefit obligation as at 31st March........

Fair value of plan assets as at 31st March..........................................
Surplus/(Deficit)....................................................................................
Current portion of the above.............................................................
Non current portion of the above.....................................................
554.19
374.00
(180.19)
(33.09)
(147.10)
479.14
352.82
(126.32)
(18.47)
(107.85)
15.90
(15.90)
(0.54)
(15.36)
15.28
(15.28)
(0.50)
(14.78)
32.13
(32.13)
(1.01)
(31.12)
31.46
(31.46)
(1.01)
(30.45)
479.14
430.04
15.28
13.59
31.46
24.95
5.70
32.53
38.27
33.77
(35.22)
554.19
(0.14)
27.04
35.65
16.87
(30.32)
479.14
(0.10)
0.91
1.28
(0.90)
(0.57)
15.90
0.85
1.18
0.03
(0.37)
15.28
2.08
2.64
(3.04)
(1.01)
32.13
1.74
2.18
3.60
(1.01)
31.46
352.82
326.66
2.56
25.47
6.66
23.95
6.82
21.71
(35.22)
374.00
32.13
25.71
(30.32)
352.82
30.77
Change in the obligation during the year ended 31st March

1.
2.
3.
4.
5.
6.
7.
IV.
Rupees crores
Unfunded Plans
Post retirement
Post retirement
housing allowance
medical
2014
2014
2013
2013
Net Asset/(Liability) recognised in the Balance Sheet as at 31st March

1.
2.
3.
4.
5.
III.
Present value of defined benefit obligation at the beginning of

the year.................................................................................................
Add/(Less) on account of Scheme of Arrangement/Business
Transfer..................................................................................................
Current service cost..............................................................................
Interest cost..........................................................................................
Actuarial (Gain)/Loss............................................................................
Benefit payments.................................................................................
Present value of defined benefit obligation at the end of the year
Change in fair value of assets during the year ended 31st March
1.
2.
3.
4.
5.
6.
7.
8.
Fair value of plan assets at the beginning of the year....................

Add/(Less) on account of Scheme of Arrangement/Business
Transfer..................................................................................................
Expected return on plan assets..........................................................
Actuarial Gain/(Loss)............................................................................
Contributions by employer (including benefit payments
recoverable)..........................................................................................
Benefit payments.................................................................................
Fair value of plan assets at the end of the year...............................
Actual return on plan assets...............................................................
V.
The Major categories of plan assets as percentage of total plan
VI.
Actuarial assumptions
Insurer managed funds*..............................................................................
0.57
(0.57)
0.37
(0.37)
1.01
(1.01)
1.01
(1.01)
100.00%
100.00%
1.
2.
3.
Discount rate.........................................................................................
Expected rate of return on plan assets.............................................
Attrition rate.........................................................................................
9.05%
7.50%
7.00%
8.00%
7.50%
7.00%
9.05%
7.00%
8.00%
7.00%
9.05%
8.00%
4.
Medical premium inflation..................................................................
7.00%
7.00%
* In the absence of detailed information regarding plan assets which is funded with Insurance Companies, the composition of each major category
of plan assets, the percentage or amount for each category to the fair value of plan assets has not been disclosed.
127
Rupees crores
VII.
Effect of one percentage point change in the assumed medical

inflation rate
1.
2.
One percentage point increase

in medical inflation rate
One percentage point decrease

2014
2013
2014
2013
Effect on the aggregate service and interest cost of post

employment medical benefits...........................................................
0.39
0.37
(0.32)
(0.31)
Effect on the accumulated post employment medical benefits

obligation.............................................................................................
2.15
2.07
(1.81)
(1.82)
VIII. Experience Adjustments
Period Ended
2014
2013
2012
2011
2010
Gratuity
1.
Defined Benefit Obligation................................................................
554.19
479.14
430.04
383.18
334.20
2.
Fair value of plan assets.....................................................................
374.00
352.82
326.66
293.80
266.10
3.
Surplus/(Deficit)...................................................................................
(180.19)
(126.32)
(103.38)
(89.38)
(68.10)
4.
Experience adjustment on plan liabilities [(Gain)/Loss]..................
74.57
6.82
19.64
16.23
7.93
5.
Experience adjustment on plan assets [Gain/(Loss)].......................
6.66
6.82
8.85
4.43
4.44
Post retirement medical

1.
15.90
15.28
13.59
14.09
9.65
2.
Plan assets............................................................................................
3.
Surplus/(Deficit)...................................................................................
(15.90)
(15.28)
(13.59)
(14.09)
(9.65)
4.
1.35
(0.60)
(0.16)
(0.36)
5.21
Post retirement housing allowance

1.
32.13
31.46
24.95
16.18
10.99
2.
Plan assets............................................................................................
3.
Surplus/(Deficit)...................................................................................
(32.13)
(31.46)
(24.95)
(16.18)
(10.99)
4.
0.75
2.55
6.28
(1.41)
0.15
The expected rate of return on plan assets is based on the average long term rate of return expected on investments of the fund during the
estimated term of obligation.
The estimate of future salary increases, considered in actuarial valuation, takes account of inflation, seniority, promotion and other relevant
factors, such as supply and demand in the employment market.
The Companys contribution to Provident Fund and Superannuation Fund aggregating Rs. 106.03 crores (2013 : Rs. 73.28 crores) has been recognised
in the Statement of Profit and Loss under the head Employee Benefits Expense.
128
32. Provision :
(a) Provision for warranty relates to warranty provision made in respect of sale of certain products, the estimated cost of which is accrued
at the time of sale. The products are generally covered under a free warranty period ranging from 6 months to 5 years.
(b) The movement in provision for warranty is as follows :
Rupees crores
2014
2013
Balance as at 1 April....................................................................................................................
320.39
Add/(Less) on account of Scheme of Arrangement/Business Transfer...................................
25.42
Add : Provision made during the year........................................................................................
257.02
Less : Utilisation during the year.................................................................................................
264.29
216.34
Balance as at 31st March...............................................................................................................
338.54
320.39
st
270.41
(0.14)
266.46
Out of the above,

Classified as Non Current.............................................................................................................
143.56
123.74
Classified as Current......................................................................................................................
194.98
196.65
338.54
320.39
33. The Company has allotted 55,24,219 Ordinary (Equity) Shares of Rs. 10 each, 10,00,000 Ordinary (Equity) Shares of Rs. 10 each, 1,73,53,034
Ordinary (Equity) Shares of Rs. 5 each and 19,11,628 Ordinary (Equity) Shares of Rs. 5 each in the years ended 31st March, 2002,
31st March, 2010, 31st March, 2011 and 31st March, 2014 respectively to the Mahindra & Mahindra Employees Stock Option Trust set up by the
Company. The Trust holds these shares for the benefit of the employees and issues them to the eligible employees as per the recommendation
of the Compensation Committee.
Options granted under Mahindra & Mahindra Limited Employees Stock Option Scheme - 2000 ("2000 Scheme") vest in 4 equal installments
on the expiry of 12 Months, 24 Months, 36 Months and 48 Months from the date of grant. The options may be exercised on any day over
a period of five years from the date of vesting. Number of vested options exercisable is subject to a minimum of 50 or number of options
vested whichever is lower.
Options granted under Mahindra & Mahindra Limited Employees Stock Option Scheme - 2010 ("2010 Scheme") vest in 5 equal installments
on the expiry of 12 Months, 24 Months, 36 Months, 48 Months and 60 Months from the date of grant. The options may be exercised on any
day over a period of 6 Months from the date of vesting. Number of vested options exercisable is subject to a minimum of 50 or number of
options vested whichever is lower.
The compensation costs of stock options granted to employees are accounted by the Company using the intrinsic value method.
Summary of stock options
No. of stock
options
Weighted average
exercise price (Rs.)
Options outstanding on 1st April, 2013.............................................................................................
63,40,580
156.80
Options granted during the year......................................................................................................
4,50,382
5.00
Options forfeited/lapsed during the year........................................................................................
1,71,589
115.29
Options exercised during the year....................................................................................................
14,13,298
158.77
Options outstanding on 31st March, 2014........................................................................................
52,06,075
144.50
Options vested but not exercised on 31st March, 2014...................................................................
28,12,996
258.50
Average share price on the date of exercise of the options are as under
Date of exercise
3rd May, 2013 - 21st March, 2014.........................................................................................................
Weighted average
share price (Rs.)
911.69
129
Information in respect of options outstanding as at 31st March, 2014

Range of exercise price
Number of options
Weighted average
remaining life
Rs. 5.00.................................................................................................................................................
28,60,455
1.93 Years
Rs. 250.00.............................................................................................................................................
11,20,042
3.37 Years
Rs. 308.00 Rs. 310.00........................................................................................................................
1,26,036
1.49 Years
Rs. 381.00.............................................................................................................................................
7,94,732
1.96 Years
Rs. 362.00.............................................................................................................................................
2,84,810
4.03 Years
Rs. 662.00.............................................................................................................................................
20,000
5.98 Years
The fair value of options granted during the year on 13th November, 2013 is Rs. 850.46 per share.
The fair value has been calculated using the Black Scholes Options Pricing Model and the significant assumptions made in this regard are as
follows :
Grant dated 13th
November, 2013
Risk free interest rate.........................................................................................................................
8.83%
Expected life........................................................................................................................................
3.25 Years
Expected volatility...............................................................................................................................
31.59%
Expected dividend yield.....................................................................................................................
1.45%
Exercise Price (Rs.)...............................................................................................................................
5.00
Stock Price (Rs.)...................................................................................................................................
895.35
In respect of options granted under the Employee Stock Option Plan, in accordance with guidelines issued by SEBI, the accounting value of
the options is accounted as deferred employee compensation, which is amortised on a straight line basis over the period between the date
of grant of options and eligible dates for conversion into equity shares. Consequently, salaries, wages, bonus etc. includes Rs. 56.14 crores
(2013 : Rs. 67.06 crores) being the amortisation of deferred employee compensation, after adjusting for reversals on account of options
lapsed. The amount excludes Rs. 2.55 crores charged to its subsidiaries for options issued to their employees.
Had the Company adopted fair value method in respect of options granted on or after 1st April, 2005, the employee compensation cost would
have been lower by Rs. 2.70 crores, Profit after tax higher by Rs. 2.70 crores and the basic and diluted earnings per share would have been
higher by Rs. 0.05 & Rs. 0.04 respectively.
34. Contingent Liability & Commitments :

(A) Contingent Liability :
(a) Guarantees given by the Company :

Rupees crores
Amount of guarantees
For other companies................................................................

Outstanding amounts against

guarantees
2014
2013
2014
2013
896.53
87.20
831.20
80.35
(b) Claims against the Company not acknowledged as debts comprise of :
(i) Excise Duty, Sales Tax and Service Tax claims disputed by the Company relating to issues of applicability and classification
aggregating Rs. 1,750.77 crores before tax (2013 : Rs. 1,526.09 crores before tax).
(ii) Other matters (excluding claims where amounts are not ascertainable) : Rs. 28.49 crores before tax (2013 : Rs. 26.94 crores
before tax).
130
(c) Taxation matters :
(i) Demands against the Company not acknowledged as debts and not provided for, relating to issues of deductibility and
taxability in respect of which the Company is in appeal and exclusive of the effect of similar matters in respect of assessments
remaining to be completed :
Income-tax : Rs. 495.58 crores (2013 : Rs. 195.74 crores).

(ii) Items in respect of which the Company has succeeded in appeal, but the Income-tax Department is pursuing/likely to pursue
in appeal/reference and exclusive of the effect of similar matters in respect of assessments remaining to be completed :
Income-tax matters
: Rs. 155.22 crores (2013 : Rs. 118.75 crores).
Surtax matters : Rs. 0.13 crores (2013 : Rs. 0.13 crores).

(d) Bills discounted not matured Rs. Nil crores (2013 : Rs. 57.56 crores).
(e) The Customs, Excise and Service Tax Appellate Tribunal (CESTAT) by its order dated 7th December, 2009 has rejected the Companys
appeal against the order dated 30 th March, 2005 passed by the Commissioner of Central Excise (Adjudication), Navi Mumbai
confirming the demand made on the Company for payment of differential excise duty (including penalty) of Rs. 304.10 crores in
connection with the classification of Companys Commander range of vehicles, during the years 1991 to 1996. Whilst the Company
had classified the Commander range of vehicles as 10-seater attracting a lower rate of excise duty, the Commissioner of Central
Excise (Adjudication), Navi Mumbai, has held that these vehicles could not be classified as 10-seater as they did not fulfil the
requirement of 10-seater vehicles, as provided under the Motor Vehicles Act, 1988 (MVA) and Maharashtra Motor Vehicles Rules,
1989 (MMVR) and as such attracted a higher rate of excise duty.

In earlier collateral proceedings on this issue, the CESTAT had by an order dated 19th July, 2005 settled the controversy
in the Companys favour. The CESTAT had accepted the Companys submission that MVA and MMVR could not be referred
to for determining the classification for the purpose of levy of excise duty and rejected the Departments appeal against the
order of the Collector, Central Excise classifying the Commander range of vehicles as 10-seater. While the Departments appeal
against the CESTAT order dated 19th July, 2005 has been admitted, the Supreme Court of India has not stayed the operation
of this order.
The Company has filed an appeal in the Supreme Court against the aforesaid order dated 7th December, 2009 inter alia, on the
grounds that the MVA and MMVR cannot be referred to for the purpose of determining the excise classification, as has been
repeatedly held by various judicial fora, including the Supreme Court and particularly by CESTAT vide its order dated 19 th July, 2005
in the Companys own case referred to above.
Without prejudice to the grounds raised in this appeal, the Company has paid an amount of Rs. 40.00 crores in January, 2010. The
Supreme Court has admitted the Companys appeal and has stayed the recovery of the balance amount till further orders.
In another case relating to Armada range of vehicles manufactured during the years 1992 to 1996, by the Company at its Nashik
facility, the Commissioner of Central Excise, Nashik passed an order dated 20 th March, 2006 confirming a demand of Rs. 24.75 crores,
on the same grounds as adopted for Commander range of vehicles. The CESTAT has given an unconditional stay against this order.
The final hearing in this matter has been adjourned till the disposal of the appeal by the Supreme Court in the matter relating to
Commander range of vehicles.
The Company strongly believes, based on legal advice it has received, that the CESTAT order dated 7th December, 2009 which
is under appeal in the Supreme Court is not sustainable in law. As such, the Company does not expect any liability on this
account. However, in view of the CESTAT order, the Company has reflected the above amount aggregating Rs. 328.85 crores
(2013 : Rs. 328.85 crores) and the interest of Rs. 305.34 crores (2013 : Rs. 269.24 crores) accrued on the same upto 31st March, 2014,
under Note (b)(i) above.
(f) In respect of (b) & (c) above, it is not practicable for the Company to estimate the closure of these issues and the consequential
timings of cash flows, if any.

(B) Commitments :
(a) Uncalled liability on equity shares partly paid Rs. 10.50 crores (2013 : Rs. 10.50 crores).
(b) The estimated amount of contracts remaining to be executed on capital account and not provided for as at 31st March, 2014 is
Rs. 1,329.63 crores (2013 : Rs. 716.91 crores).
131
35. Research and Development expenditure :

(a) In recognised Research and Development units :
(i)
Debited to the Statement of Profit and Loss, including certain expenditure based on allocations made by the Company,
aggregate Rs. 600.99 crores (2013 : Rs. 594.43 crores) [excluding depreciation and amortisation of Rs. 205.53 crores
(2013 : Rs. 191.86 crores)].
(ii) Development expenditure incurred during the year Rs. 466.98 crores (2013 : Rs. 274.02 crores).
(iii) Capitalisation of assets Rs. 122.13 crores (2013 : Rs. 190.54 crores).
(b) In other units :
(i)
Debited to the Statement of Profit and Loss, including certain expenditure based on allocations made by the
Company, aggregate Rs. 39.29 crores (2013 : Rs. 16.33 crores) [excluding depreciation and amortisation of Rs. 47.28 crores
(2013 : Rs. 6.91 crores)].
(ii) Development expenditure incurred during the year Rs. 20.83 crores (2013 : Rs. Nil crores).
(iii) Capitalisation of assets Rs. 9.23 crores (2013 : Rs. 0.34 crores).
36. The net difference in foreign exchange loss debited to the Statement of Profit and Loss is Rs. 152.71 crores (2013 : Loss of Rs. 6.99 crores).
37. Scheme of Arrangement :

Pursuant to the Scheme of Arrangement (The Scheme) between Mahindra Trucks and Buses Limited (MTBL), a subsidiary of the
Company, and the Company, as sanctioned by Honourable High Court of Bombay vide its order dated 7th March, 2014, the entire assets
and liabilities, duties and obligations of the Trucks Business of MTBL was transferred to and vested in the Company, from 1st April, 2013
(the appointed date). The scheme became effective on 30 th March, 2014.
The accounting of this arrangement was done as per the scheme approved by Honourable High Court of Bombay and the same has been
given effect to in the financial statements as under :

(a) The assets and liabilities of the Trucks Business of MTBL were recorded in the books of the Company at their book values.
(b) MTBL reorganised its Equity Share Capital and Securities Premium Account by writing off it's accumulated losses and the excess of assets
over liabilities given up, first against Securities Premium Account and the balance against the reorganisation of Equity Share Capital by
reducing the face value and paid up value of the Equity Share Capital of Rs. 10 each to Re 0.20.
(c)
Consequent to the transfer of Trucks Business, the Company reorganised its investment cost in MTBL in proportion to the net
worth of the remaining business of MTBL and the net worth of the Trucks Business leading to a reduction in investment value of
Rs. 819.79 crores.
(d) The excess of the reduction in investment value over the net assets taken over amounting to Rs. 565.85 crores was debited to General
Reserve.
The result for the year ended 31st March, 2014 also include a tax benefit of Rs. 297.78 crores arising from the carry forward unabsorbed past
losses (including unabsorbed depreciation) and deferred tax positions of the Trucks business of MTBL.

The current year figures are therefore not strictly comparable with that of the previous year.
38. The Board of Directors of the Company during the year approved entering into a transaction in the Auto Components business with CIE
Automotive S.A., Spain (CIE). The transaction is to be completed in parts.

The first part involving the following has been completed during the year :
(a) The Company transferred its entire shareholding in Mahindra Gears & Transmissions Private Limited at a fair value determined by an
independent valuer to its wholly owned subsidiary Mahindra Investments (India) Private Limited (MIPL). The excess of Rs. 23.62 crores
over the cost has not been recognised in these results having regard to the principles of prudence and the substance of this transaction,
and will be dealt with on completion of the related parts.
(b)
The Company sold 99.4% of its holdings in Mahindra CIE Automotive Limited (MCIE) (formerly known as Mahindra Forgings
Limited) and 100% of its holdings in both Mahindra Composites Limited (MCL) and Mahindra Hinoday Industries Limited (MHIL) to
one of the subsidiaries of CIE at a price that is lower than the carrying value of these investments by Rs. 147.76 crores, which amount
has been debited to the Investment Fluctuation Reserve (IFR). IFR is expected to be credited, having regard to the substance of the
transaction, with an amount not less than the amount debited above, when the second part of the transaction, described below,
takes place.
132
(c) Consequently MHIL, Mahindra Forgings International Limited, Mahindra Forgings Europe AG, Gesenkschmiede Schneider GmbH, JECOJellinghaus GmbH, Falkenroth Umformtechnik GmbH, Stokes Group Limited, Stokes Forgings Dudley Limited, Stokes Forgings Limited,
Mahindra Forgings Global Limited, Schneweiss & Co. GmbH ceased to be subsidiaries of the Company.

MCL ceased to be an associate of the Company.
MCIE ceased to be a subsidiary and became an associate of the Company.
(d) The Company acquired a 13.5% stake in CIE through its wholly owned subsidiary Mahindra Overseas Investment Company (Mauritius)
Limited (MOICML), making it an associate of the Company, in view of its contractual representation on the Board of CIE.
(e) Completion of open offer by CIE through its subsidiary in both MCIE and MCL.
The second part of the transaction involves the merger of Mahindra Ugine Steel Company Limited, Mahindra Gears International Limited and
Mahindra Investments (India) Private Limited, and MHIL, MCL and a CIE subsidiary with MCIE effective 1st October, 2013 through Schemes of
Arrangement under Section 391 to 394 of the Companies Act, 1956.

On completion of both parts above :
(a) CIE will hold approximately 53% in MCIE.
(b) The Company will hold 20.04% in MCIE, and
(c) The Company, through its wholly owned subsidiary MOICML, will hold 13.5% in CIE.
39. Exceptional items of Rs. 52.79 crores (2013 : Rs. 90.62 crores) comprise of profit on sale of certain long term investments.
40. Earnings per Share :
2014
2013
Profit for the year (Rupees crores)...............................................................................................................
3,758.35
3,352.82
Profit for the year for diluted earnings per share (Rupees crores)..........................................................
3,758.35
3,352.82
Weighted average number of Ordinary (Equity) Shares used in computing basic earnings
per share.........................................................................................................................................................
59,03,23,271
58,97,55,261
Effect of potential Ordinary (Equity) Shares on conversion of bonds and employee stock options...
2,51,23,100
2,42,30,839
Weighted average number of Ordinary (Equity) Shares used in computing diluted earnings
per share.........................................................................................................................................................
61,54,46,371
61,39,86,100
Basic Earnings per share (Rs.) (Face value of Rs. 5 per share)..................................................................
63.67
56.85
Diluted Earnings per share (Rs.)...................................................................................................................
61.07
54.61
41. The outstanding derivative instruments and unhedged foreign currency exposures as on 31st March, 2014 :

The Company has taken foreign exchange forward contracts to sell US $ 6.80 crores (2013 : US $ 24.00 crores).

The foreign currency exposures not hedged by derivative instruments or otherwise as on 31st March, 2014 are Receivables of
US $ 8.03 crores, ZAR 2.24 crores, AUD 0.54 crores, GBP 0.25 crores, EURO 0.23 crores and Payables (excluding Borrowings, covered in the
paragraph below) of KRW 9.39 crores, JPY 2.43 crores, SEK 0.05 crores, CHF * crores (2013 : Receivables of ZAR 3.80 crores, US $ 2.81 crores,
AUD 0.80 crores, GBP 0.24 crores, AED 0.02 crores and Payables (excluding Borrowings, covered in the paragraph below) of JPY 4.83 crores,
EURO 1.20 crores, SEK 0.06 crores, CHF * crores, SGD * crores).
The Company has outstanding foreign currency borrowings of JPY 194.10 crores and US $ 30.00 crores (2013 : JPY 388.20 crores and
US $ 30.00 crores). The borrowing of JPY 194.10 crores (2013 : JPY 388.20 crores) has been fixed to US $ 1.67 crores (2013 : US $ 3.33 crores)
using cross currency swaps. Currency risk of US $ liability has not been hedged. The US $ interest rate risk has been hedged using interest
rate swaps.

* denotes amounts less than 50,000 of respective currency
133
42. Related Party Disclosures :

(a) Related parties where control exists :
(i)
Subsidiaries :
Sl. No.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
35.
36.
37.
38.
39.
40.
41.
42.
43.
44.
45.
46.
134
Name of the Company

Mahindra Engineering and Chemical Products Limited
Mahindra Steel Service Centre Limited
Mahindra First Choice Wheels Limited
Mahindra USA Inc.
Mahindra & Mahindra South Africa (Proprietary) Limited
Mahindra Engineering Services Limited
Mahindra Gears & Transmissions Private Limited
Mahindra Europe S.r.l.
Jiangxi Mahindra Yueda Tractor Company Limited
Mahindra-BT Investment Company (Mauritius) Limited
Mahindra Intertrade Limited
Mahindra MiddleEast Electrical Steel Service Centre (FZC)
Mahindra Consulting Engineers Limited
Mahindra Holidays & Resorts India Limited
Mahindra Holidays and Resorts USA Inc.
MHR Hotel Management GmbH (upto 28th November, 2013)
Mahindra Hotels and Residences India Limited
Mahindra Holdings Limited
NBS International Limited
Mahindra Ugine Steel Company Limited
Mahindra Insurance Brokers Limited
Mahindra Rural Housing Finance Limited
Bristlecone Limited
Bristlecone Inc.
Bristlecone UK Limited
Bristlecone India Limited
Bristlecone (Singapore) Pte. Limited
Bristlecone GmbH
Bristlecone (Malaysia) Sdn. Bhd.
Mahindra Automobile Distributor Private Limited
Mahindra Trucks and Buses Limited (formerly known as
Mahindra Navistar Automotives Limited)
Mahindra Engineering Services (Europe) Limited
Mahindra Engineering GmbH
Mahindra Lifespace Developers Limited
Mahindra Infrastructure Developers Limited
Mahindra World City (Jaipur) Limited
Mahindra Integrated Township Limited
Mahindra Residential Developers Limited
Mahindra World City Developers Limited
Mahindra World City (Maharashtra) Limited
Knowledge Township Limited
Mahindra Vehicle Manufacturers Limited
Sl. No.
47.
48.
Name of the Company
61.
62.
63.
64.
65.
66.
67.
68.
69.
70.
71.
72.
73.
74.
75.
76.
77.
78.
79.
80.
81.
82.
83.
84.
85.
86.
87.
Mahindra Logistics Limited

Mahindra CIE Automotive Limited (formerly known as
Mahindra Forgings Limited) (upto 3rd October, 2013)
Mahindra Forgings International Limited
(upto 3rd October, 2013)
Mahindra Forgings Europe AG (upto 3rd October, 2013)
Gesenkschmiede Schneider GmbH (upto 3rd October, 2013)
JECO-Jellinghaus GmbH (upto 3rd October, 2013)
Falkenroth Umformtechnik GmbH (upto 3rd October, 2013)
Stokes Group Limited (upto 3rd October, 2013)
Stokes Forgings Dudley Limited (upto 3rd October, 2013)
Stokes Forgings Limited (upto 3rd October, 2013)
Mahindra Forgings Global Limited (upto 3rd October, 2013)
Schneweiss & Co. GmbH (upto 3rd October, 2013)
Mahindra Hinoday Industries Limited
(upto 3rd October, 2013)
Mahindra Heavy Engines Private Limited (formerly known as
Mahindra Navistar Engines Private Limited)
Mahindra Aerospace Private Limited
Heritage Bird (M) Sdn. Bhd.
Mahindra First Choice Services Limited
Mahindra Graphic Research Design S.r.l.
Mahindra Gears Global Limited
Mahindra Gears Cyprus Limited
Metalcastello S.p.A.
Mahindra Bebanco Developers Limited
Industrial Township (Maharashtra) Limited
Crest Geartech Private Limited
Mahindra Business & Consulting Services Private Limited
Mahindra Automotive Australia Pty. Limited
Mahindra United Football Club Private Limited
Defence Land Systems India Private Limited
Mahindra Yueda (Yancheng) Tractor Company Limited
Mahindra Electrical Steel Private Limited
Raigad Industrial & Business Park Limited
Retail Initiative Holdings Limited
Mahindra Technologies Services Inc.
Mahindra Punjab Tractors Private Limited
Mahindra Namaste Private Limited
Mahindra Conveyor Systems Private Limited
BAH Hotelanlagen AG (upto 28th November, 2013)
Mahindra Aerospace Australia Pty. Limited
88.
89.
Aerostaff Australia Pty. Limited

Mahindra Reva Electric Vehicles Private Limited
49.
50.
51.
52.
53.
54.
55.
56.
57.
58.
59.
60.
42. Related Party Disclosures : (contd.)

Sl. No.
90.
91.
92.
93.
94.
95.
96.
97.
98.
99.
100.
101.
102.
103.
104.
105.
Name of the Company
Sl. No.
Bristlecone Consulting Limited

Anthurium Developers Limited
Mahindra Homes Private Limited (formerly known as
Watsonia Developers Limited) (upto 19 th July, 2013)
Gipp Aero Investments Pty. Limited
Gippsaero Pty. Limited
GA8 Airvan Pty. Limited
GA200 Pty. Limited
Airvan Flight Services Pty. Limited
Nomad TC Pty. Limited
Mahindra Emirates Vehicle Armouring FZ-LLC
Mahindra Integrated Business Solutions Private Limited
Mahindra Aerostructures Private Limited
Ssangyong European Parts Center B.V.
Ssangyong Motor (Shanghai) Company Limited
Ssangyong (Yizheng) Auto Parts Manufacturing Company
Limited (upto 19 th November, 2013)
106.
Mahindra EPC Services Private Limited
107.
Bristlecone International AG
108.
EPC Industrie Limited
109.
Mahindra Telecommunications Investment Private Limited
110.
Mahindra Sanyo Special Steel Private Limited
111.
Bell Tower Resorts Private Limited
112.
Mahindra Racing S.r.l.
113.
114.
115.
Swaraj Automotives Limited

Mahindra Defence Naval Systems Private Limited
Mahindra Defence Systems Limited
116.
117.
118.
119.
120.
121.
122.
123.
124.
125.
126.
127.
128.
129.
130.
131.
132.
133.
134.
Name of the Company

Divine Heritage Hotels Private Limited
Gables Promoters Private Limited
2 X 2 Logistics Private Limited
Holiday on Hills Resorts Private Limited
MH Boutique Hospitality Limited
Infinity Hospitality Group Company Limited
Mahindra Tractor Assembly Inc.
Mahindra Housing Private Limited
Mahindra Telephonics Integrated Systems Limited
(w.e.f. 22nd April, 2013)
Mahindra Investments (India) Private Limited
(w.e.f. 25th April, 2013)
Mahindra Investments (International) Private Limited
(w.e.f. 25th April, 2013)
Mahindra Offgrid Services Private Limited
(w.e.f. 28th June, 2013)
Mahindra Asset Management Company Private Limited
(w.e.f. 20 th June, 2013)
Mahindra Trustee Company Private Limited
(w.e.f. 10 th July, 2013)
Brightsolar Renewable Energy Private Limited
(w.e.f. 3rd December, 2013)
Cleansolar Renewable Energy Private Limited
(w.e.f. 3rd December, 2013)
Mahindra Auto Steel Private Limited (w.e.f. 12th December, 2013)
Mahindra North American Technical Centre, Inc.
(w.e.f. 18th Dececember, 2013)
Mahindra 'Electoral Trust' Company
(w.e.f. 30 th December, 2013)
(b) Other parties with whom transactions have taken place during the year.
(i)
Associates :
Sl. No.
Name of the Company
Sl. No.
1.
Mahindra Composites Limited (upto 3 October, 2013)
2.
Swaraj Engines Limited
3.
Mahindra & Mahindra Contech Limited
Name of the Company
rd
4.

Mahindra Forgings Limited) (w.e.f. 4th October, 2013)
5.
Tech Mahindra Limited
(ii) Joint Venture :

Sl. No.
Name of the Company
1.
Mahindra Sona Limited

(iii) Joint Venture of a Subsidiary :
Sl. No.
Name of the Company
1.
Mahindra Solar One Private Limited
2.
Mahindra Water Utilities Limited
135
42. Related Party Disclosures : (contd.)

(b) Other parties with whom transactions have taken place during the year. (contd.)
(iv) Key Management Personnel (KMP) :
Chairman and Managing Director...............................................
Executive Director and Group CFO
(upto 13th November, 2013)..........................................................
Executive Director and President (Automotive & Farm
Equipment Sectors) (w.e.f. 23rd September, 2013).....................
Sl. No.
1.
Mr. Anand Mahindra

Mr. B. N. Doshi
Dr. Pawan Goenka
(v) Enterprise over which KMP is able to exercise significant influence :

Name of the Company
Prudential Management & Services Private Limited
(vi) Welfare Funds :
Sl. No.
1.
2.
3.
4.

Name of the Fund

M&M Benefit Trust
M&M Employees Welfare Fund
M&M Employees Farm Equipment Sector Employees Welfare Fund
Mahindra World School Education Trust
(c) The related party transactions are as under : (contd.)

Rupees crores
Sl.
No.
1.
2.
3.
136
Nature of Transactions
Subsidiaries
Associate
Companies
Joint
Ventures/
Joint
Ventures of
Subsidiaries
Key
Management
Personnel/
KMP
Exercising
Significant
influence
Welfare
Funds
Purchases :
Goods..................................................................................
7,954.99
819.69
171.26
Fixed Assets........................................................................
(10,551.78)
143.26
(547.55)
2.06
(148.77)
()
()
Knowhow...........................................................................
(15.40)
(0.25)
()
()
()
Services...............................................................................
(19.38)
1,649.04
()
17.26
()
()
()
(1,330.72)
(8.44)
()
()
()
Sales :
Goods..................................................................................
1,806.75
0.55
Fixed Assets........................................................................
(2,731.34)
0.90
(0.10)
()
()
()
Services...............................................................................
(9.72)
48.85
()
1.65
()
*
()
()
Sales/Assignments of assets/liabilities.............................
(79.30)
13.62
(1.00)
(0.01)
()
()
()
()
()
()
()
Investments :
Purchases/Subscribed/Conversion....................................
1,480.18
Sales/Redemption/Conversion.........................................
(1,107.82)
518.01
(8.00)
()
()
()
(25.59)
(8.00)
()
()
()

Rupees crores
Sl.
No.
4.
Deputation of Personnel :
From Parties.......................................................................
To Parties............................................................................
5.
6.
7.
Managerial Remuneration...............................................
Stock Options.....................................................................
Finance :
Inter Corporate Deposits given.......................................
Subsidiaries
Interest Income..................................................................
Security Deposits Paid.......................................................
(1.48)
(0.42)
()
()
()
14.11
4.03
0.09
(12.38)
(3.90)
(0.66)
()
()
14.77
()
()
()
(7.83)
()
()
()
()
(#)
()
1,146.09
()
()
()
()
956.85
(940.23)
()
()
()
()
73.79
0.03
(0.27)
()
0.02
()
()
()
()
()
()
250.72
43.96
3.54
(149.32)
(5.36)
(27.81)
()
()
(2.07)
()
()
()
()
Security Deposits Received...............................................
0.38
()
()
()
()
Share Application Money Given/(Converted) (Net)......
(24.95)
(27.17)
()
()
()
()
()
8.
Welfare
Funds
()
Dividend Received.............................................................
Key
Management
Personnel/
KMP
Exercising
Significant
influence
0.46
(75.84)
Interest Expense................................................................
Joint
Ventures/
Joint
Ventures of
Subsidiaries
1.86
(936.23)
Inter Corporate Deposits refunded by Parties...............
Associate
Companies
Dividends Distributed.......................................................
9.
Guarantees given on behalf of Subsidiaries during the

year, absorbed...................................................................
10.
Other Transactions :
Other Income.....................................................................
Other Expenses..................................................................
92.62
69.92
()
()
()
(21.45)
(67.23)
1,008.51
(35.14)
()
()
()
()
67.39
()
(64.79)
7.86
0.41
(7.93)
(0.33)
25.53
(38.55)
3.54
()
(0.25)
()
()
()
# Refer Annexure I to the Directors' Report.

137

Rupees crores
Sl.
No.
Reimbursements received from parties..........................

Reimbursements made to parties...................................
Subsidiaries
Advances given to parties Refunded/Converted...........
Outstandings :
Payable...............................................................................
Receivable..........................................................................
Debentures/Bonds issued by Parties...............................
4.12
0.09
(0.13)
()
()
26.80
1.37
1.14
13.11
12.
13.
14.
Share Application Money Outstanding (Net)................
Provision for Doubtful debts/advances..........................
Guarantees given on behalf of subsidiaries, absorbed.

Amount of guarantees as on 31st March........................
* denotes amounts less than Rs. 50,000.

Previous years figures are in brackets.
138
()
()
()
()
()
()
()
(11.63)
(0.76)
14.00
0.14
()
()
()
()
()
()
()
738.60
26.45
32.96
3.41
(756.26)
(10.93)
(28.67)
(3.76)
()
727.03
10.53
1.96
1.07
(753.65)
(4.54)
(1.90)
(465.29)
Inter Corporate Deposits given.......................................
Welfare
Funds
(1.20)
(10.20)
11.
Key
Management
Personnel/
KMP
Exercising
Significant
influence
69.23
()
Advances Given to parties................................................
Joint
Ventures/
Joint
Ventures of
Subsidiaries
(118.38)
(69.35)
Writeback of Provision for Advances..............................
Associate
Companies
()
17.00
(17.00)
()
()
()
()
508.76
4.59
(285.75)
(4.59)
()
()
()
2.22
(27.17)
()
()
()
()
4.85
7.18
10.00
(5.99)
(7.18)
()
()
(10.00)
896.53
(87.20)
()
()
()
()
The Significant related party transactions are as under : (contd.)

Sl.
No.
1.
2.
Nature of
Transactions
Subsidiaries
Purchases - Goods
Mahindra Vehicle
Manufacturers Limited
Purchases Services
Rupees
crores
6,807.27
(9,202.01)
1,242.53
Associate Companies
Rupees
crores
Joint Ventures/
Joint Ventures
of Subsidiaries
Rupees
crores
Swaraj Engines
Limited
711.61
(545.41)
Mahindra Sona
Limited
171.26
(148.77)
Mahindra CIE
Automotive Limited
104.21
()
Mahindra Sona
Limited
(0.01)
(1,028.48)
(4.18)
Mahindra & Mahindra
Contech Limited
3.
Sales - Goods
Mahindra Vehicle
Manufacturers Limited
Mahindra & Mahindra
South Africa (Proprietary)
Limited
Mahindra USA Inc.
930.55
(1,467.37)
12.36
Swaraj Engines
Limited
4.89
(4.26)
0.55
(0.10)
199.80
()
333.96
(364.09)
4.
5.
Sales - Services
Investments Purchases/
Subscribed/
Conversion
182.30
(322.49)
Mahindra Automobile
Distributor Private Limited
10.16
Mahindra & Mahindra

Financial Services Limited
7.86
(8.08)
(9.28)
8.42
()
Mahindra Holidays &

Resorts India Limited
5.26
()
Mahindra Trucks and Buses

Limited
(35.35)
Mahindra Two Wheelers

Limited
345.96
(345.00)
394.33
1.50
(0.80)
Vayugrid Marketplace
Services Private
Limited
(0.20)
(8.00)
()
Mahindra Ugine Steel
Company Limited
214.33
Mahindra Navistar
Automotives Limited
(347.00)
()

139

Sl.
No.
6.
Nature of
Transactions
Subsidiaries
Rupees
crores
Associate Companies
Rupees
crores
InvestmentsSales/Redemption/
Conversion
423.61
()
Services Private
Limited
(8.00)
79.37
Mahindra Investments
(India) Private Limited
()
Mahindra & Mahindra

7.
8.
9.
10.
Advances Given
Inter Corporate
Deposits Given
Inter Corporate
Deposits refunded
by parties
Guarantees Given
(25.00)
8.68
Mahindra Holidays &

Resorts India Limited
(5.27)
Mahindra Tractor
Assembly Inc.
2.71
()
Mahindra Lifespace
Developers Limited
1.66
Mahindra Technologies
Services Inc.
(2.75)
Services Private Limited
(0.76)
()

Limited
553.50
(324.40)
Mahindra & Mahindra

500.00
(500.00)
Mahindra & Mahindra

500.00
(500.00)

Limited
344.00
(339.40)
Mahindra Forgings
Europe AG
145.67
(35.14)
Mahindra Overseas
Investment Company
(Mauritius) Limited
811.56
()
The Significant related party transactions with Key Management Personnel are as under :
Sl. No. Nature of Transaction
1.
Managerial Remuneration
Name of KMP
Mr. Anand Mahindra
Rupees crores
5.19
(4.66)
Dr. Pawan Goenka
2.36
()
Mr. B. N. Doshi
7.22
(3.17)
140
Joint Ventures/
Joint Ventures
of Subsidiaries
Rupees
crores
43. Joint Venture Disclosure :

(i)
The Companys Jointly Controlled Entities are :

Name of the Entity
Country of
Incorporation
(a) Tech Mahindra Limited (upto 30 th August, 2012)..........................................
India
(b) Mahindra Sona Limited....................................................................................
India
% of ownership interest
2014
2013
29.77%
29.77%
47.56%
(ii) The Company's share of each of the Assets, Liabilities, Income and Expenses (each without elimination of the effect of transactions
between the Company and the Joint Venture) with respect to its interest in these Jointly Controlled Entities are :
Rupees crores
I.
2014
2013
Fixed Assets............................................................................................................................
17.79
12.66
2.
Non Current Investments.....................................................................................................
0.02
0.05
3.
Long Term Loans and Advances..........................................................................................
0.99
0.98
4.
Inventories..............................................................................................................................
11.61
9.37
5.
Trade Receivables..................................................................................................................
27.39
25.07
6.
Cash and Bank Balances.......................................................................................................
5.17
4.85
7.
Short Term Loans and Advances.........................................................................................
1.71
1.25
8.
Other Current Assets............................................................................................................
0.27
0.15
ASSETS
1.
II.
III.
IV.
V.
LIABILITIES
1.
Deferred Tax Liabilities.........................................................................................................
1.49
0.74
2.
Other Long Term Liabilities..................................................................................................
1.78
1.71
3.
Long Term Provisions............................................................................................................
1.60
1.46
4.
Short Term Borrowings.........................................................................................................
1.26
1.16
5.
Trade Payables.......................................................................................................................
14.63
11.12
6.
Other Current Liabilities.......................................................................................................
2.14
1.55
7.
Short Term Provisions...........................................................................................................
5.00
4.88
INCOME
1.
Revenue from Operations....................................................................................................
108.74
1,287.04
2.
Other Income.........................................................................................................................
1.60
2.32
EXPENSES
1.
Materials consumed and changes in inventories...............................................................
70.56
64.65
2.
Manufacturing, Selling expenses, Interest and Finance charges.....................................
25.22
1,001.47
3.
Depreciation and Amortisation Expense............................................................................
1.75
36.68
4.
Provision for taxation...........................................................................................................
3.38
36.30
5.
Share in Associate.................................................................................................................
109.02
OTHER MATTERS
1.
Contingent Liabilities............................................................................................................
5.27
4.53
2.
Capital Commitments...........................................................................................................
0.29
0.97
141
44. Value of Imports on C.I.F. basis accounted for during the year :
Rupees crores
2014
2013
Raw Materials ...............................................................................................................................
4.71
0.96
(ii) Components, Spare Parts etc.......................................................................................................
535.25
706.86
(iii) Capital Goods................................................................................................................................
141.97
141.88
(iv) Items imported for Resale............................................................................................................
15.01
46.24
696.94
895.94
(i)
Notes :
(i)
Credits, if any, recoverable in respect of short landings etc. are not considered.
(ii) The value of imports shown above includes :

(a) Imports on C&F basis as per supplier's invoices Rs. 63.25 crores (2013 : Rs. 110.71 crores).
(b) Imports on 'cost' basis Rs. 603.22 crores (2013 : Rs. 707.75 crores).
45. Expenditure in Foreign Currencies (Subject to deduction of tax where applicable) :
Rupees crores
2014
2013
Professional and Consultancy fees [including Rs. 0.03 crores (2013 : Rs. 13.95 crores)
capitalised]..................................................................................................................................
85.34
117.63
(ii) Interest and Commitment charges...........................................................................................
75.39
79.43
(i)
(iii) Royalty.........................................................................................................................................
3.71
5.42
(iv) Development Expenditure & Computer Software in Intangible Assets..............................
289.02
111.09
(v)
158.92
145.95
612.38
459.52
Others..........................................................................................................................................
46. Remittance in Foreign Currency on account of dividends to non-resident shareholders :

Number of
Dividend relating to
Shareholders
Equity shares
Amount remitted
Rupees crores
2014 : 1
3,19,97,627
41.60
Year ended 31st March, 2013
2013 : 1
3,53,16,674
44.15
Year ended 31st March, 2012
47. Earnings in foreign exchange :

Rupees crores
2014
2013
Export of goods on F.O.B. basis.................................................................................................
2,125.29
2,225.02
(ii) Interest.........................................................................................................................................
19.91
17.92
(iii) Consultancy fees..........................................................................................................................
5.15
(iv) Others (freight etc.)....................................................................................................................
109.58
110.43
2,259.93
2,353.37
(i)
Note :
F.O.B. value of exports includes local sales which qualify for export benefits and for which payment is receivable in foreign currency and local/
export sales under rupee credit which qualify for export benefits.
142
26,166.26
Total Revenue.............................................
depreciation................................................
Non cash expenses other than

7.19
178.09
0.24
7.19
834.60
1,532.94
7.19
834.60
1,532.94
656.27
0.03
Depreciation and Amortisation Expense.
314.85
1,218.06
7,596.68
Capital Expenditure...................................
6.66
14,497.46
2,353.78
7,596.68
5,236.24
Total Liabilities...........................................
7,596.68
6,900.78
6.66
Unallocated Corporate Liabilities.............
2,353.78
5,236.24
Segment Liabilities.....................................
15,601.16
31,288.65
10.42
9,986.74
Total Assets................................................
5,604.00
15,687.49
Unallocated Corporate Assets..................
Segment Assets..........................................
15,601.16
3,758.35
Profit after tax...........................................
OTHER INFORMATION
611.08
(191.64)
259.22
4,384.22
40,508.50
40,508.50
Total
Income Taxes...............................................
15,601.16
(16.58)
(16.58)
Eliminations
4,369.43
10.42
4,384.22
40,525.08
16.58
40,508.50
Total
Segment
Profit before tax........................................
5,604.00
5.90
25.11
25.11
Other
(52.79)
9,986.74
2,452.79
14,333.71
7.95
14,325.76
Farm
Equipment
2014
segments.....................................................
Exceptional item unallocable to
unallocated income...................................
Unallocated corporate expenses net of
Finance costs...............................................
Less :
Segment Result...........................................
1,925.53
8.63
Inter Segment Sales...................................
Result
26,157.63
Automotive
Net External Sales......................................
Revenue
Particulars
Primary Segment Disclosure - Business Segment :
Segment Report For the year ended 31st March, 2014
48. Segment Information
17.04
516.88
937.57
4,872.75
4,872.75
8,758.50
8,758.50
2,596.60
28,405.38
9.65
28,395.73
Automotive
138.40
402.25
2,084.07
2,084.07
4,588.41
4,588.41
1,857.78
11,989.67
15.82
11,973.85
Farm
Equipment
1.97
14.75
12.03
12.03
29.06
29.06
17.22
72.61
1.03
71.58
Other
2013
17.04
657.25
1,354.57
6,968.85
6,968.85
13,375.97
13,375.97
4,471.60
40,467.66
26.50
40,441.16
(26.50)
(26.50)
Total Eliminations
Segment
17.04
657.25
1,354.57
12,794.67
5,825.82
6,968.85
27,453.59
14,077.62
13,375.97
3,352.82
1,094.27
4,447.09
(90.62)
(76.06)
191.19
4,471.60
40,441.16
40,441.16
Total
Rupees crores
143
Secondary Segment Disclosure - Geographical Segment :

Rupees crores
2014
Particulars
2013
Domestic
Overseas
Total
Domestic
Overseas
Total
Revenue from External Customers.....
37,978.60
2,529.90
40,508.50
38,005.10
2,436.06
40,441.16
Segment Assets.....................................
15,601.16
15,601.16
13,375.97
13,375.97
Capital Expenditure.............................
1,532.94
1,532.94
1,354.57
1,354.57
Notes :

1. Business Segments :

The Company has considered business segments as the primary segment for disclosure.

The segment have been identified taking into account the organisational structure as well as the differing risks and returns of
these segments.

Automotive Segment comprises of sale of automobiles, spare parts and related services.

Farm Equipment Segment comprises of sale of tractors, spare parts and related services.

2.

Secondary Segments :
The geographical segments are considered for disclosure as secondary segment.
Domestic Segment includes sales to customers located in India and service income accrued in India.
Overseas Segment includes sales and services rendered to customers located outside India.
49. Previous years figures have been regrouped/restated wherever necessary.

Signatures to Notes 1 to 49
Bharat Doshi
Deepak S. Parekh
Nadir B. Godrej
M. M. Murugappan
A. K. Nanda
Narayanan Vaghul
R. K. Kulkarni
Vishakha N. Desai
Vikram Singh Mehta
S. B. Mainak
144
Anand G. Mahindra
Dr. Pawan Goenka

Directors
V. S. Parthasarathy
Narayan Shankar

Company Secretary
Statement pursuant to Section 212 of the Companies Act, 1956, relating to subsidiary companies
Name of the Subsidiary Companies
The net aggregate of profits/(losses) of the Subsidiary

Number of Shares in
Companies
so far as they concern the members of Mahindra
the Subsidiary Company
& Mahindra Limited
held by Mahindra &
For Current Financial Year
For Previous Financial Years
Mahindra Limited
at the financial year Dealt with in
Not dealt Dealt with in
Not dealt
ending date the accounts
with in the the accounts
with in the
of Mahindra
accounts of
accounts of
of Mahindra
& Mahindra Mahindra &
Mahindra &
& Mahindra
Limited for
Mahindra
Mahindra
Limited for
the year
Limited for
Limited for
the year
ended
the year
the year
ended
31st March,
31st March,
ended
ended
Extent of
2014
31st March,
2014
31st March,
Equity
holding
2014
2014
Nos.
% Rupees crores Rupees crores Rupees crores Rupees crores
Mahindra Engineering and Chemical Products

Limited................................................................................
4,39,98,462
100.00%
1.35
138.92
\ Retail Initiative Holdings Limited...............................
100.00%
(0.01)
(0.04)
Mahindra Retail Private Limited................................
95.69%
(109.09)
(265.03)
\ Mahindra Conveyor Systems Private Limited............
91.50%
4.04
15.20
Mahindra Intertrade Limited...........................................
2,71,00,006
100.00%
64.37
14.94
282.61
@ Mahindra MiddleEast Electrical Steel Service

Centre (FZC)..................................................................
90.00%
4.15
31.40
@ Mahindra Steel Service Centre Limited.....................
61.00%
3.31
17.11
@ Mahindra Auto Steel Private Limited........................
100.00%
(0.73)
@ Mahindra Electrical Steel Private Limited.................
100.00%
(0.69)
(1.41)
Mahindra Consulting Engineers Limited........................
11,51,000
54.16%
0.10
0.58
2.88
Mahindra Holidays & Resorts India Limited..................
6,65,85,642
#75.00%
70.90
26.63
329.94
+ Mahindra Holidays and Resorts USA Inc...................
#75.00%
(0.11)
0.15
+ Mahindra Hotels and Residences India Limited.......
#75.00%
(*)
(0.09)
+ Heritage Bird (M) Sdn.Bhd.........................................
#75.00%
(0.01)
(0.66)
+ Bell Tower Resorts Private Limited............................
#75.00%
(6.52)
(9.50)
+ Divine Heritage Hotels Private Limited.....................
#75.00%
(0.80)
(1.51)
+ Gables Promoters Private Limited..............................
#75.00%
(0.02)
(*)
+ Holiday on Hills Resorts Private Limited...................
#75.00%
0.91
(1.12)
+ MH Boutique Hospitality Limited..............................
#36.75%
(0.19)
(0.07)
+ Infinity Hospitality Group Company Limited............
#55.49%
(0.98)
(0.66)
NBS International Limited................................................
50,490
100.00%
(6.04)
(0.09)
Mahindra Ugine Steel Company Limited.......................
1,64,66,789
50.41%
94.85
82.97
Mahindra Sanyo Special Steel Private Limited..............
51,00,000
51.00%
(34.85)
(9.83)
Mahindra Holdings Limited.............................................
6,12,49,999
100.00%
0.82
17.02
b Mahindra United Football Club Private Limited......
100.00%
0.01
0.12

145

Number of Shares in
Companies
& Mahindra Limited
held by Mahindra &
Mahindra Limited
Not dealt
with in the
of Mahindra
accounts of
accounts of
of Mahindra
Mahindra &
& Mahindra
Limited for
Mahindra
Mahindra
Limited for
the year
Limited for
Limited for
the year
ended
the year
the year
ended
31st March,
31st March,
ended
ended
Extent of
2014
31st March,
2014
31st March,
Equity
holding
2014
2014
Nos.
b Mahindra Punjab Tractors Private Limited................
100.00%
(*)
(0.01)
b Mahindra EPC Services Private Limited.....................
100.00%
(0.92)
38.96
Mahindra Offgrid Services Private Limited...............
100.00%
(0.02)
Brightsolar Renewable Energy Private Limited........
100.00%
(0.01)
Cleansolar Renewable Energy Private Limited.........
100.00%
(0.01)
b Mahindra Namaste Private Limited...........................
100.00%
(2.98)
(0.04)
b Mahindra Integrated Business Solutions Private

Limited..........................................................................
100.00%
1.59
1.54
b Mahindra Telecommunications Investment Private

Limited..........................................................................
100.00%
0.12
0.15
b Gateway Housing Finance Corporation Limited.......
49.99%
0.03
Mahindra Lifespace Developers Limited........................
2,08,46,126
51.03%
39.67
12.51
209.54
J Mahindra Infrastructure Developers Limited...........
51.03%
(0.13)
0.01
J Mahindra World City Developers Limited................
45.42%
4.04
54.22
J Mahindra World City (Jaipur) Limited.......................
37.76%
9.23
13.69
J Mahindra Integrated Township Limited...................
49.15%
(2.54)
(0.94)
Mahindra Residential Developers Limited................
49.15%
16.13
6.31
J Mahindra World City (Maharashtra) Limited...........
51.03%
(*)
(0.58)
J Knowledge Township Limited....................................
51.03%
(*)
(0.23)
J Mahindra Bebanco Developers Limited....................
35.72%
0.41
(2.41)
J Raigad Industrial & Business Park Limited................
51.03%
(*)
(0.05)
J Industrial Township (Maharashtra) Limited..............
51.03%
(*)
(0.07)
J Anthurium Developers Limited..................................
51.03%
(*)
(0.01)
J Mahindra Housing Private Limited............................
51.03%
(*)
Mahindra & Mahindra Financial Services Limited.........
29,12,07,660
#51.20%
454.26
104.83
1165.63
Mahindra Insurance Brokers Limited.........................
#43.52%
18.28
39.43
Mahindra Rural Housing Finance Limited.................
#44.80%
12.13
18.76

146

Number of Shares in
Companies
& Mahindra Limited
held by Mahindra &
Mahindra Limited
Not dealt
with in the
of Mahindra
accounts of
accounts of
of Mahindra
Mahindra &
& Mahindra
Limited for
Mahindra
Mahindra
Limited for
the year
Limited for
Limited for
the year
ended
the year
the year
ended
31st March,
31st March,
ended
ended
Extent of
2014
31st March,
2014
31st March,
Equity
holding
2014
2014
Nos.
Mahindra Business & Consulting Services Private

Limited..........................................................................
#51.20%
1.44
1.27
Mahindra Assets Management Company Private

Limited..........................................................................
#51.20%
(*)
Mahindra Trustee Company Private Limited............
#51.20%
Bristlecone Limited...........................................................
42,22,250
78.38%
(4.21)
(34.73)
Bristlecone Inc..............................................................
78.38%
4.23
(26.84)
Bristlecone India Limited............................................
78.38%
7.85
23.32
Bristlecone (Singapore) Pte. Limited.........................
78.38%
0.13
(3.92)
Bristlecone GmbH........................................................
78.38%
1.95
2.51
Bristlecone UK Limited................................................
78.38%
0.44
(12.08)
Bristlecone (Malaysia) Sdn.Bhd..................................
78.38%
2.81
3.27
Bristlecone Consulting Limited...................................
78.38%
1.14
1.76
Bristlecone International AG......................................
78.38%
2.40
3.11
Mahindra First Choice Wheels Limited...........................
3,47,77,255
#52.15%
0.22
(52.56)
Mahindra USA Inc.............................................................
14,00,00,000
100.00%
29.13
(41.99)
Mahindra Tractor Assembly Inc..................................
100.00%
(3.04)
Mahindra North American Technical Center, Inc. ...
100.00%
0.14
Mahindra Gujarat Tractor Limited...................................
16,83,218
60.00%
2.82
(6.67)
Mahindra Shubhlabh Services Limited...........................
89,12,400
100.00%
6.83
(2.59)
Mahindra & Mahindra South Africa (Proprietary)

Limited................................................................................
5,20,00,000
100.00%
21.45
5.82
21.50
Mahindra Overseas Investment Company (Mauritius)

Limited................................................................................
8,79,02,525
100.00%
(93.46)
(74.44)
Mahindra Racing S.r.l..................................................
100.00%
(0.02)
Mahindra-BT Investment Company (Mauritius)

Limited..........................................................................
57.00%
(0.40)
49.81
Mahindra Europe S.r.l. ...............................................
100.00%
(7.45)
(3.66)

147

Number of Shares in
Companies
& Mahindra Limited
held by Mahindra &
Mahindra Limited
Not dealt
with in the
of Mahindra
accounts of
accounts of
of Mahindra
Mahindra &
& Mahindra
Limited for
Mahindra
Mahindra
Limited for
the year
Limited for
Limited for
the year
ended
the year
the year
ended
31st March,
31st March,
ended
ended
Extent of
2014
31st March,
2014
31st March,
Equity
holding
2014
2014
Nos.
Mahindra Graphic Research Design S.r.l...................
100.00%
(1.14)
(11.18)
Mahindra Yueda (Yancheng) Tractor Company

Limited..........................................................................
51.00%
(11.00)
(30.17)
Jiangxi Mahindra Yueda Tractor Company Limited.
45.58%
(6.53)
(6.58)
Mahindra Emirates Vehicle Armouring FZ-LLC.........
51.00%
0.17
(5.21)
Mahindra Engineering Services Limited.........................
81,26,218
#80.69%
34.56
9.72
83.54
++ Mahindra Engineering Services (Europe) Limited....
#80.69%
2.16
8.54
++ Mahindra Engineering GmbH....................................
#80.69%
(0.29)
(4.22)
++ Mahindra Technologies Services Inc..........................
#80.69%
2.18
1.59
Mahindra Automobile Distributor Private Limited.......
7,40,000
95.00%
12.92
5.18
20.57
Mahindra Trucks and Buses Limited...............................
1,14,79,25,600
100.00%
3.96
Mahindra Vehicle Manufacturers Limited......................
96,22,50,000
100.00%
216.67
70.00
321.75
Mahindra Logistics Limited..............................................
5,39,06,123
88.60%
32.47
25.03
2 X 2 Logistics Private Limited......................................
88.60%
0.01
(*)
Mahindra Heavy Engines Private Limited......................
32,80,00,000
100.00%
(57.76)
(131.52)
Mahindra Aerospace Private Limited.............................
12,36,97,041
66.67%
(0.72)
(4.73)
Mahindra Aerospace Australia Pty. Limited.............
66.67%
(0.07)
(0.08)
Aerostaff Australia Pty. Limited.................................
66.67%
(4.86)
(11.65)
Gipp Aero Investments Pty. Limited..........................
50.07%
0.10
(0.09)
Gippsaero Pty. Limited................................................
50.07%
(19.50)
(32.43)
GA8 Airvan Pty. Limited.............................................
50.07%
GA200 Pty. Limited......................................................
50.07%
Airvan Flight Services Pty. Limited............................
50.07%
Nomad TC Pty. Limited...............................................
50.07%
Mahindra Aerostructures Private Limited.................
66.67%
(11.69)
(10.85)

148

Number of Shares in
Companies
& Mahindra Limited
held by Mahindra &
Mahindra Limited
Not dealt
with in the
of Mahindra
accounts of
accounts of
of Mahindra
Mahindra &
& Mahindra
Limited for
Mahindra
Mahindra
Limited for
the year
Limited for
Limited for
the year
ended
the year
the year
ended
31st March,
31st March,
ended
ended
Extent of
2014
31st March,
2014
31st March,
Equity
holding
2014
2014
Nos.
Mahindra First Choice Services Limited.........................
13,87,70,000
100.00%
(42.65)
(61.75)
Mahindra Gears International Limited...........................
2,30,00,001
100.00%
(0.22)
(0.52)
Mahindra Gears Global Limited.................................
53.34%
(0.12)
(0.91)
- Mahindra Gears Cyprus Limited.................................
53.34%
(0.02)
- Metalcastello S.p.A. ...................................................
51.00%
(33.23)
(78.63)
Crest Geartech Private Limited..................................
51.00%
(0.13)
0.34
Mahindra Automotive Australia Pty. Limited................
45,75,000
100.00%
(5.26)
(7.50)
Mahindra Two Wheelers Limited....................................
1,11,35,11,969
88.46%
(406.29)
(653.60)
Defence Land Systems India Private Limited.................
6,29,00,000
100.00%
(9.98)
(56.86)
Mahindra Reva Electric Vehicles Private Limited..........
2,39,43,542
73.42%
(59.11)
(52.82)
Ssangyong Motor Company ...........................................
9,99,64,502
#72.85%
53.06
(853.38)
bb Ssangyong European Parts Center B.V.....................
#72.85%
0.53
1.89
bb Ssangyong Motor (Shanghai) Company Limited ...
#72.85%
13.23
(0.12)
EPC Industrie Limited.......................................................
1,51,44,433
54.80%
4.22
4.73
Swaraj Automotives Limited...........................................
17,06,925
71.19%
1.67
0.51
1.02
Mahindra Defence Systems Limited...............................
42,53,467
100.00%
2.64
0.05
Mahindra Telephonics Integrated Systems Limited.
74.00%
(5.08)
Mahindra Defence Naval Systems Private Limited...
100.00%
0.97
0.04
Mahindra Investments (India) Private Limited..............
8,00,56,580
100.00%
(0.67)
Mahindra Gears & Transmissions Private Limited....
76.67%
4.69
3.89
Mahindra Investments (International) Private

Limited................................................................................
50,000
100.00%
(0.07)
Mahindra Electoral Trust Company..............................
50,000
100.00%
Mahindra Construction Company Limited.....................
900,000
37.49%
(0.03)

# after considering shares issued to its ESOP Trust but not allotted to its employees.
149
@
+
++
bb
a
a
a
a
a
a
a
a
a
a
a
a
a
a
a
a
a
a
a
a
a
a
a
a
a
a
subsidiary
subsidiary
subsidiary
subsidiary
subsidiary
subsidiary
subsidiary
subsidiary
subsidiary
subsidiary
subsidiary
subsidiary
subsidiary
subsidiary
subsidiary
subsidiary
subsidiary
subsidiary
subsidiary
subsidiary
subsidiary
subsidiary
subsidiary
subsidiary
subsidiary
subsidiary
of
of
of
of
of
of
of
of
of
of
of
of
of
of
of
of
of
of
of
of
of
of
of
of
of
of

Bristlecone Limited
Mahindra USA Inc.
Mahindra Yueda (Yancheng) Tractor Company Limited
Mahindra Aerospace Australia Pty. Limited
Gipp Aero Investments Pty. Limited
The financial year of all Subsidiaries ended on 31st March, 2014, except Mahindra Yueda (Yancheng) Tractor Company Limited, Ssangyong Motor
Company, Ssangyong European Parts Center B.V., Ssangyong Motor (Shanghai) Company Limited, Infinity Hospitality Group Company Limited
whose financial years are 1st January, 2013 to 31st December, 2013 and Mahindra Electoral Trust Company whose first financial years would be
from 30 th December, 2013 to 31st December, 2014 and Mahindra Trustee Company Private Limited whose first financial year would be from 10 th
July, 2013 to 30 th June, 2014.
Bharat Doshi
Deepak S. Parekh
Nadir B. Godrej
M. M. Murugappan
A. K. Nanda
Narayanan Vaghul
R. K. Kulkarni
Vishakha N. Desai
Vikram Singh Mehta
S. B. Mainak
150
Anand G. Mahindra
Dr. Pawan Goenka

Directors
V. S. Parthasarathy
Narayan Shankar

Company Secretary
MAHINDRA & MAHINDRA LIMITED (CONSOLIDATED)
Independent Auditors Report to the Board of Directors of Mahindra & Mahindra Limited
Report on the Consolidated Financial Statements
Opinion
1.
We have audited the accompanying consolidated financial
statements of Mahindra & Mahindra Limited (the Company) and
its subsidiaries (the Group) which comprise the Consolidated
Balance Sheet as at 31st March, 2014, the Consolidated Statement
of Profit and Loss and the Consolidated Cash Flow Statement for
the year then ended, and a summary of the significant accounting
policies and other explanatory information.
5. In our opinion and to the best of our information and according
to the explanations given to us, and based on the consideration of
the reports of the other auditors on the financial statements of the
subsidiaries, jointly controlled entities and associates referred to
below in the Other Matter paragraph, the aforesaid consolidated
financial statements give a true and fair view in conformity with the
accounting principles generally accepted in India:

(a) in the case of the Consolidated Balance Sheet, of the state of
affairs of the Group as at 31st March, 2014;
2. The Companys Management is responsible for the preparation of

these consolidated financial statements that give a true and fair
view of the consolidated financial position, consolidated financial
performance and consolidated cash flows of the Group in accordance
with the accounting principles generally accepted in India. This
responsibility includes the design, implementation and maintenance
of internal control relevant to the preparation and presentation
of the consolidated financial statements that give a true and fair
view and are free from material misstatement, whether due to
fraud or error.
(b) in the case of the Consolidated Statement of Profit and Loss, of
the profit of the Group for the year ended on that date; and
(c) in the case of the Consolidated Cash Flow Statement, of the
cash flows of the Group for the year ended on that date.
Auditors Responsibility
Other Matter
3. Our responsibility is to express an opinion on these consolidated

financial statements based on our audit. We conducted our audit in
accordance with the Standards on Auditing issued by the Institute
of Chartered Accountants of India. Those Standards require that we
comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the consolidated
financial statements are free from material misstatement.
7. We did not audit the financial statements of certain subsidiaries and
jointly controlled entities, whose financial statements reflect the
Groups share of total assets of Rs. 53,191.70 crores as at 31st March,
2014, and the Groups share of total revenues of Rs. 31,981.61 crores
for the year ended on that date, and net cash inflows amounting
to Rs. 90.36 crores for the year ended on that date and associates
whose financial statements reflect the Groups share of profit upto
31st March, 2014 of Rs. 23.11 crores and the Groups share of profit
of Rs. 42.93 crores for the year ended on that date as considered
in the Consolidated Financial Statements. These financial statements
and other financial information have been audited by other auditors
whose reports have been furnished to us, and our opinion, in so far
as it relates to the amounts and disclosures included in respect of
these subsidiaries, jointly controlled entities and associates, is based
solely on the reports of the other auditors.
Managements
Statements
Responsibility
for
the
Consolidated
Financial
4. An audit involves performing procedures to obtain audit evidence

about the amounts and the disclosures in the consolidated financial
statements. The procedures selected depend on the auditors
judgment, including the assessment of the risks of material
misstatement of the consolidated financial statements, whether
due to fraud or error. In making those risk assessments, the
auditor considers internal control relevant to the Companys
preparation and presentation of the consolidated financial
statements that give a true and fair view in order to design audit
procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the effectiveness
of the Companys internal control. An audit also includes
evaluating the appropriateness of the accounting policies used
and the reasonableness of the accounting estimates made by the
Management, as well as evaluating the overall presentation of the
consolidated financial statements.
We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion.
Emphasis of Matter
6. We draw attention to Note 36 to the financial statements which
describes the uncertainty related to the recovery suit filed against
an associate of the Company and other matters. Our opinion is not
qualified in respect of this matter.
Our opinion is not qualified in respect of this matter.

Shyamak R Tata
Partner
153
Consolidated Balance Sheet as at 31
st
March, 2014
Rupees crores
Note
I.

EQUITY AND LIABILITIES

SHAREHOLDERS FUNDS :
(a) Share Capital.....................................................................................
(b) Reserves and Surplus........................................................................
MINORITY INTEREST
NON-CURRENT LIABILITIES :
(a) Long Term Borrowings.....................................................................
(b) Deferred Tax Liabilities (Net)..........................................................
(c) Other Long Term Liabilities.............................................................
(d) Long Term Provisions.......................................................................
CURRENT LIABILITIES :
(a) Short Term Borrowings....................................................................
(b) Trade Payables..................................................................................
(c) Other Current Liabilities..................................................................
(d) Short Term Provisions......................................................................
4
5
6
7A
8
9
2014
295.16
23,011.70
295.16
19,665.54
23,306.86
19,960.70
5,733.10
5,296.97
25,491.75
1,201.97
2,388.10
2,590.12
19,860.26
893.50
2,103.40
2,251.63
31,671.94
10
11
12
13
2,780.65
11,799.84
10,479.33
2,498.54
Total..............
II. ASSETS

NON-CURRENT ASSETS :

(a) Fixed Assets :
Tangible Assets.................................................................................
Intangible Assets..............................................................................
Capital Work-in-Progress.................................................................

Intangible Assets Under Development..........................................

(b)
(c)
(d)
(e)
(f)
Goodwill on Consolidation..............................................................
Non Current Investments.................................................................
Deferred Tax Assets (Net)................................................................
Long Term Loans and Advances.....................................................
Other Non Current Assets...............................................................
CURRENT ASSETS :
(a) Current Investments.........................................................................
(b) Inventories.........................................................................................
(c) Trade Receivables.............................................................................
(d) Cash and Bank Balances..................................................................
(e) Short Term Loans and Advances.....................................................
(f) Other Current Assets.......................................................................
14A
14B
15A
7B
16
17
25,108.79
3,368.48
11,910.63
8,789.46
2,034.76
27,558.36
26,103.33
88,270.26
76,469.79
16,058.29
978.68
1,243.60
947.45
15,530.98
779.02
1,119.50
511.70
19,228.02
1,343.99
5,852.37
381.67
21,364.41
505.37
17,941.20
1,997.34
4,626.20
338.36
16,972.59
397.66
48,675.83
15B
18
19
20
21
22
2013
2,229.98
8,353.54
5,725.42
6,522.79
15,842.14
920.56
Total..............
42,273.35
1,814.21
8,416.90
5,176.97
4,936.54
13,006.56
845.26
39,594.43
34,196.44
88,270.26
76,469.79

Shyamak R Tata
Partner
154
Bharat Doshi
Deepak S. Parekh
Nadir B. Godrej
M. M. Murugappan
A. K. Nanda
Narayanan Vaghul
R. K. Kulkarni
Vishakha N. Desai
Vikram Singh Mehta
S. B. Mainak
Anand G. Mahindra
Dr. Pawan Goenka

Directors
V. S. Parthasarathy
Narayan Shankar

Company Secretary
Consolidated Statement of Profit and Loss for the year ended 31
st
March, 2014
Rupees crores
Note
2014
2013
71,160.67
4,229.70
67,921.93
5,278.39
Revenue from Operations

Gross Revenue from Sale of Products and Services........................................................................
Less : Excise Duty................................................................................................................................
23
Net Revenue from Sale of Products and Services............................................................................

Other Operating Revenue..................................................................................................................
23
23
66,930.97
7,069.96
62,643.54
6,049.95
Revenue from Operations (Net)........................................................................................................

Other Income.......................................................................................................................................
24
74,000.93
505.09
68,693.49
388.94
74,506.02
69,082.43
25
43,252.55
1,879.01
39,409.50
2,610.67
26
27
28
(238.97)
6,885.94
2,953.93
2,169.57
12,341.91
(128.00)
6,819.07
2,297.00
2,079.86
11,132.44
Less : Cost of Manufactured/Purchased Products Capitalised.......................................................
69,243.94
239.67
64,220.54
265.98
Total Expenses.....................................................................................................................................
Profit Before Exceptional Items and Tax..........................................................................................
Add : Exceptional Items......................................................................................................................
69,004.27
5,501.75
317.85
63,954.56
5,127.87
452.50
Profit Before Tax.................................................................................................................................

(Add)/Less : Tax Expense....................................................................................................................

Current Tax....................................................................................................................

Less : MAT Credit Entitlement....................................................................................
5,819.60
5,580.37
1,793.91
(490.71)
1,754.11
(21.11)
Net Current Tax.............................................................................................................

Deferred Tax (Net)........................................................................................................
1,303.20
193.02
1,733.00
201.63
Profit for the year before share of Profit/(Loss) of Associates and Minority Interest................
Add/(Less) : Share of Profit/(Loss) of Associates for the year.......................................................
1,496.22
4,323.38
830.42
1,934.63
3,645.74
483.41
Profit before Minority Interest..........................................................................................................

Minority Share in (Profit)...................................................................................................................
5,153.80
(486.87)
4,129.15
(29.95)
Net Profit for the year........................................................................................................................
4,666.93
4,099.20
79.06
75.83
69.51
66.76
Total Revenue .....................................................................................................................................

Expenses :
Cost of Materials Consumed..............................................................................................................
Purchases of Stock-in-Trade................................................................................................................
Changes in Inventories of Finished Goods, Work-in-Progress, Stock-in-Trade and Manufactured
Components.........................................................................................................................................
Employee Benefits Expense................................................................................................................
Finance Costs.......................................................................................................................................
Depreciation and Amortisation Expense..........................................................................................
Other Expenses....................................................................................................................................
Earnings per equity share

(Face value Rs. 5/- per share) (Rupees)
Basic......................................................................................................................................................
Diluted..................................................................................................................................................
29
37
38

Shyamak R Tata
Partner
Bharat Doshi
Deepak S. Parekh
Nadir B. Godrej
M. M. Murugappan
A. K. Nanda
Narayanan Vaghul
R. K. Kulkarni
Vishakha N. Desai
Vikram Singh Mehta
S. B. Mainak
Anand G. Mahindra
Dr. Pawan Goenka

Directors
V. S. Parthasarathy
Narayan Shankar

Company Secretary
155
Consolidated Cash Flow Statement

Rupees crores
2014
2013
5,501.75
5,127.87
2,174.95
60.02
2,084.55
12.77
(400.80)
(226.07)
676.36
76.66
(10.56)
(1.62)
7.19
(1.12)
3.57
629.75
98.28
(76.81)
(2.09)
17.04
(1.84)
2,584.65
2,535.58
Operating Profit before Working Capital changes.............................................................................
8,086.40
7,663.45

Changes in :

Trade and other receivables..........................................................................................................

Loans against Assets *...................................................................................................................
Inventories.......................................................................................................................................

Trade and other payables..............................................................................................................
(2,258.20)
(5,813.86)
(77.78)
1,094.42
(2,154.52)
(6,756.35)
(1,124.01)
3,230.94
(7,055.42)
(6,803.94)
A. CASH FLOW FROM OPERATING ACTIVITIES :

Profit before exceptional items and taxation.....................................................................................

Adjustments for :

Depreciation, Amortisation and Impairment..............................................................................

(Profit)/Loss on Exchange (Net)....................................................................................................
Investment and Interest Income [Excluding Rs. 0.11 crores (2013 : Rs. 0.52 crores) in
respect of financial enterprises consolidated]............................................................................

Interest, Commitment and Finance charges [Excluding Rs.2,277.57 crores (2013:
Rs. 1,667.25 crores) in respect of financial enterprises consolidated]......................................

Employee Stock Compensation Expense......................................................................................

Profit on sale of Investments (Net)..............................................................................................

Profit on fixed assets sold/scrapped/written off (Net)..............................................................

Write off of Intangible Asset Under Development....................................................................

Provision for diminution in value of long term invesment.......................................................

Excess of cost over fair value of current investments (Net)......................................................

Excess of cost over fair value of current investments reversed (Net)......................................
Cash generated from operations..........................................................................................................

Income Taxes paid (Net of refunds).....................................................................................................
1,030.98
(1,274.72)
859.51
(1,781.18)
NET CASH (USED IN) OPERATING ACTIVITIES.....................................................................................

* In respect of financial enterprises consolidated.
(243.74)
(921.67)
(3,665.28)
57.57
(66,102.06)
64,682.69
231.26
23.50
(543.77)
(232.48)
(16.30)
102.75
(112.70)
55.75
(20.81)
(3,291.39)
63.66
(45,660.89)
45,519.84
179.78
27.16
(544.61)
(46.91)
(170.19)
121.74
(296.33)
943.81
1,154.24
106.34
156.29
(4,489.73)
(2,787.61)
B. CASH FLOW FROM INVESTING ACTIVITIES :

Purchase of fixed assets.........................................................................................................................

Sale of fixed assets.................................................................................................................................

Purchase of investments........................................................................................................................

Sale of investments.................................................................................................................................

Interest received.....................................................................................................................................

Dividends received..................................................................................................................................

Bank deposits (Net)................................................................................................................................

(Increase)/Decrease in Earmarked & Margin account.........................................................................

Inter corporate deposits given..............................................................................................................

Inter corporate deposits refunded.......................................................................................................

Loan given...............................................................................................................................................

Repayment of loan given.......................................................................................................................

Purchase consideration paid on acquisition of holding interest in Subsidiaries.............................
Subscription (Net) received on divesture of Interest in Subsidiaries/Sale Proceeds on disposal of
Subsidiaries..............................................................................................................................................

Exceptional Items :

Sale of Long Term Investments.....................................................................................................

156
NET CASH USED IN INVESTING ACTIVITIES..........................................................................................
Consolidated Cash Flow Statement
(contd.)
Rupees crores
2014
2013
183.90
C. CASH FLOW FROM FINANCING ACTIVITIES :

Proceeds from Issue of Share Capital (including Securities Premium).............................................
Proceeds from borrowings.....................................................................................................................
60,506.94
60,108.18
Repayments of borrowings....................................................................................................................
(53,264.69)
(54,392.17)
Net increase in Loans repayable on demand and cash credit...........................................................
(171.49)
427.91
Dividends paid.........................................................................................................................................
(1,094.20)
(997.30)
Interest, Commitment and Finance charges paid...............................................................................
(583.08)
(638.33)
NET CASH FROM FINANCING ACTIVITIES.............................................................................................
5,577.38
4,508.29
NET INCREASE IN CASH AND CASH EQUIVALENTS............................................................................
843.91
799.01
OPENING CASH AND CASH EQUIVALENTS..........................................................................................
3,822.84
3,138.88
CONSEQUENT TO CHANGE IN GROUPS INTEREST.............................................................................
(115.75)
CASH AND BANK BALANCE ON ACQUISITION/(DISPOSAL) OF SUBSIDIARIES.................................
(33.87)
0.70
CLOSING CASH AND CASH EQUIVALENTS...........................................................................................
4,632.88
3,822.84
157
Notes to the Consolidated Cash Flow Statement

Rupees crores
2014
2013
1. The above Cash Flow Statement has been prepared under the indirect method as set out in
Accounting Standard 3 Cash Flow Statement
2.
Cash and Cash Equivalents....................................................................................................................
4,632.88
3,822.84
Unrealised Gain on foreign currency Cash and Cash Equivalents.....................................................
(0.04)
4,632.84
3,822.84
Other Bank Balances..............................................................................................................................
1,889.95
1,113.70
Cash and Bank Balances.........................................................................................................................
6,522.79
4,936.54

Shyamak R Tata
Partner
158
Bharat Doshi
Deepak S. Parekh
Nadir B. Godrej
M. M. Murugappan
A. K. Nanda
Narayanan Vaghul
R. K. Kulkarni
Vishakha N. Desai
Vikram Singh Mehta
S. B. Mainak
Anand G. Mahindra
Dr. Pawan Goenka

Directors
V. S. Parthasarathy
Narayan Shankar

Company Secretary
Notes forming part of the Consolidated Financial Statements
1. The Consolidated Financial Statements relate to Mahindra & Mahindra Limited (M&M, the Company) and its subsidiaries, joint ventures and
associates. The Consolidated Financial Statements have been prepared in accordance with Accounting Standard 21 (AS 21) Consolidated
Financial Statements, Accounting Standard 23 (AS 23) Accounting for Investment in Associates in Consolidated Financial Statements
and Accounting Standard 27 (AS 27) Financial Reporting of Interests in Joint Ventures notified by the Companies (Accounting Standard)
Rules, 2006. The Consolidated Financial Statements have been prepared on the following basis :

(a) Investments in Subsidiaries :
(i) The Financial Statements of the Company and its subsidiary companies have been combined on a line by line basis by adding
together the book values of like items of assets, liabilities, income and expenses. Intra group balances, intra group transactions and
unrealised profits or losses have been fully eliminated.

(ii) The difference between the costs of investment in the subsidiaries and the Companys share of equity at the time of acquisition of
shares in the subsidiaries is recognised in the Financial Statements as Goodwill on consolidation or Capital Reserve on consolidation.
(iii) The difference between the proceeds from disposal of investment in a subsidiary and the carrying amount of its assets less liabilities
as of date of disposal is recognised in the Statement of Profit and Loss as profit or loss on disposal of investment in subsidiaries.
(iv) Minority Interest in the net assets of consolidated subsidiaries consists :
(a) the amount of equity attributable to minorities at the date on which investment in a subsidiary is made; and
(b) the minorities share of movements in equity since the date the parent subsidiary relationship comes into existence.
(v) The Financial Statements of the subsidiaries are drawn up to 31st March, 2014.
The subsidiaries (which along with Mahindra & Mahindra Limited, the parent, constitute the group) considered in the presentation of these
Consolidated Financial Statements are :
Name of the Subsidiary Company
Country of
Incorporation
Proportion of ownership
interest*
as at
31-03-2014
as at
31-03-2013
Proportion of voting power

where different
as at
31-03-2014
Indian Subsidiaries
as at
31-03-2013
1. Mahindra First Choice Wheels Limited.........................................
India
54.83%
54.83%
2. Mahindra Lifespace Developers Limited.......................................
India
51.03%
51.04%
3. Mahindra Consulting Engineers Limited......................................
India
54.16%
54.16%
4. Bristlecone India Limited................................................................
India
78.38%
79.10%
5. Mahindra Engineering and Chemical Products Limited.............
India
100.00%
100.00%
6. Mahindra Gujarat Tractor Limited.................................................
India
60.00%
60.00%
7. Mahindra Holidays & Resorts India Limited.................................
India
75.64%
79.38%
8. Mahindra Infrastructure Developers Limited...............................
India
51.03%
51.04%
9. Mahindra Intertrade Limited.........................................................
India
100.00%
100.00%
10. Mahindra & Mahindra Financial Services Limited.......................
India
51.68%
51.72%
11. Mahindra Steel Service Centre Limited.........................................
India
61.00%
61.00%
12. Mahindra Shubhlabh Services Limited..........................................
India
100.00%
100.00%
13. NBS International Limited..............................................................
India
100.00%
100.00%
14. Mahindra Insurance Brokers Limited............................................
India
43.92%
43.96%
15. Mahindra Engineering Services Limited.......................................
India
99.87%
99.92%
16. Mahindra World City Developers Limited....................................
India
45.42%
42.17%
17. Mahindra Gears & Transmissions Private Limited........................
India
76.67%
76.67%
18. Mahindra Trucks and Buses Limited (formerly known as

Mahindra Navistar Automotives Limited)....................................
India
100.00%
100.00%
19. Mahindra World City (Maharashtra) Limited...............................
India
51.03%
51.04%
20. Mahindra Automobile Distributor Private Limited......................
India
95.00%
95.00%
100.00%
100.00%
100.00%
100.00%
85.00%
85.00%
82.62%
82.62%
100.00%
100.00%
159
Country of
Incorporation
interest*
as at
31-03-2014
as at
31-03-2013
50.69%

where different
as at
31-03-2014
as at
31-03-2013
21. Mahindra Ugine Steel Company Limited......................................
India
50.41%
22. Mahindra World City (Jaipur) Limited..........................................
India
37.76%
37.77%
74.00%
74.00%
23. Mahindra Integrated Township Limited.......................................
India
49.15%
48.32%
99.14%
99.14%
100.00%
100.00%
24. Mahindra Vehicle Manufacturers Limited....................................
India
25. Mahindra Hinoday Industries Limited (Upto 3rd October, 2013)..
India
26. Mahindra CIE Automotive Limited (formerly known as

Mahindra Forgings Limited) (Upto 3rd October, 2013)................
India
27. Mahindra Hotels and Residences India Limited...........................
India
75.64%
79.38%
100.00%
100.00%
28. Knowledge Township Limited.......................................................
India
51.03%
51.04%
100.00%
100.00%
29. Mahindra Holdings Limited............................................................
India
100.00%
100.00%
30. Mahindra Logistics Limited............................................................
India
88.60%
100.00%
31. Mahindra Rural Housing Finance Limited....................................
India
45.22%
45.26%
87.50%
87.50%
100.00%
100.00%
64.96%
52.97%
32. Mahindra Residential Developers Limited....................................
India
49.15%
48.32%
33. Mahindra Aerospace Private Limited............................................
India
66.67%
66.67%
34. Mahindra First Choice Services Limited........................................
India
100.00%
100.00%
35. Mahindra Heavy Engines Private Limited (formerly known as

Mahindra Navistar Engines Private Limited)................................
India
100.00%
100.00%
36. Mahindra Bebanco Developers Limited........................................
India
35.72%
35.73%
70.00%
70.00%
37. Industrial Township (Maharashtra) Limited.................................
India
51.03%
51.04%
100.00%
100.00%
38. Crest Geartech Private Limited......................................................
India
51.00%
51.00%
100.00%
100.00%
39. Mahindra Business & Consulting Services Private Limited..........
India
51.68%
51.72%
100.00%
100.00%
40. Mahindra Two Wheelers Limited..................................................
India
88.46%
93.03%
41. Defence Land Systems India Private Limited................................
India
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
42. Mahindra United Football Club Private Limited..........................
India
100.00%
100.00%
43. Retail Initiative Holdings Limited..................................................
India
100.00%
100.00%
44. Mahindra Retail Private Limited....................................................
India
95.69%
94.80%
45. Mahindra Electrical Steel Private Limited.....................................
India
100.00%
100.00%
46. Raigad Industrial & Business Park Limited...................................
India
51.03%
51.04%
47. Mahindra Conveyor Systems Private Limited...............................
India
91.50%
91.50%
48. Mahindra Punjab Tractors Private Limited...................................
India
100.00%
100.00%
49. Mahindra Namaste Private Limited...............................................
India
100.00%
100.00%
50. Mahindra Reva Electric Vehicles Private Limited.........................
India
73.42%
67.90%
51. Anthurium Developers Limited......................................................
India
51.03%
51.04%
100.00%
100.00%
52. Mahindra Homes Private Limited (Formerly known as Watsonia

Developers Limited) (Upto 19 th July, 2013)...................................
India
53. Mahindra Integrated Business Solutions Private Limited...........
India
51.04%
54. Mahindra Aerostructures Private Limited....................................
India
66.67%
66.67%
55. Mahindra EPC Services Private Limited.........................................
India
100.00%
100.00%
56. Mahindra Telecommunications Investment Private Limited.......
India
100.00%
100.00%
57. Mahindra Sanyo Special Steel Private Limited.............................
India
51.00%
25.85%
58. Bell Tower Resorts Private Limited................................................
India
75.64%
79.38%
59. Swaraj Automotives Limited..........................................................
India
71.19%
71.19%
60. EPC Industrie Limited......................................................................
India
54.80%
54.81%
61. Mahindra Defence Naval Systems Private Limited......................
India
100.00%
100.00%
62. Mahindra Defence Systems Limited..............................................
India
100.00%
100.00%
63. Divine Heritage Hotels Private Limited.........................................
India
75.64%
79.38%
160
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
51.00%
Country of
Incorporation
interest*
as at
31-03-2014

where different
as at
31-03-2013
as at
31-03-2014
as at
31-03-2013
100.00%
64. Gables Promoters Private Limited.................................................
India
75.64%
79.38%
100.00%
65. 2 x 2 Logistics Private Limited........................................................
India
88.60%
100.00%
100.00%
66. Holiday on Hills Resorts Private Limited.......................................
India
75.64%
79.38%
100.00%
100.00%
67. Mahindra Housing Private Limited................................................
India
51.03%
51.04%
100.00%
100.00%
68. Mahindra Telephonics Integrated Systems Limited

(w.e.f. 22nd April, 2013)...................................................................
India
74.00%
69. Mahindra Investments (India) Private Limited

(w.e.f. 25th April, 2013)....................................................................
India
100.00%
70. Mahindra Investments (International) Private Limited

(w.e.f. 25th April, 2013)....................................................................
India
100.00%
71. Mahindra Asset Management Company Private Limited

(w.e.f. 20 th June, 2013)....................................................................
India
51.68%
72. Mahindra Offgrid Services Private Limited

(w.e.f. 28th June, 2013)....................................................................
India
100.00%
73. Mahindra Trustee Company Private Limited

(w.e.f. 10 th July, 2013)......................................................................
India
51.68%
74. Brightsolar Renewable Energy Private Limited

(w.e.f 3rd December, 2013)..............................................................
India
100.00%
75. Cleansolar Renewable Energy Private Limited

(w.e.f 3rd December, 2013)..............................................................
India
100.00%
76. Mahindra Auto Steel Private Limited

(w.e.f. 12th December, 2013)...........................................................
India
100.00%
77. Mahindra Electoral Trust Company

(w.e.f. 30 th December, 2013)...........................................................
India
100.00%
Australia
100.00%
100.00%
79. Mahindra Aerospace Australia Pty. Limited.................................
Australia
66.67%
66.67%
100.00%
100.00%
80. Aerostaff Australia Pty. Limited....................................................
Australia
66.67%
66.67%
100.00%
100.00%
81. Gipp Aero Investments Pty. Limited..............................................
Australia
50.07%
50.07%
75.10%
75.10%
100.00%
100.00%
Foreign Subsidiaries
78. Mahindra Automotive Australia Pty. Limited..............................
82. Gippsaero Pty. Limited....................................................................
Australia
50.07%
50.07%
100.00%
100.00%
83. GA8 Airvan Pty. Limited.................................................................
Australia
50.07%
50.07%
100.00%
100.00%
84. GA200 Pty. Limited.........................................................................
Australia
50.07%
50.07%
100.00%
100.00%
85. Airvan Flight Services Pty. Limited................................................
Australia
50.07%
50.07%
100.00%
100.00%
86. Nomad TC Pty. Limited...................................................................
Australia
50.07%
50.07%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
87. BAH Hotelanlagen AG (upto 28 Novermber, 2013)...................
Austria
88. Bristlecone Consulting Limited......................................................
Canada
78.38%
89. Bristlecone Limited..........................................................................
Cayman Islands
78.38%
79.10%
90. Mahindra Yueda (Yancheng) Tractor Company Limited.............
China
51.00%
51.00%
91. Ssangyong Motor (Shanghai) Company Limited.........................
China
73.23%
70.04%
92. Ssangyong (Yizheng) Auto Parts Manufacturing Company

Limited (upto 19 th Novermber, 2013)............................................
China
th
78.53%
79.10%
98.93%
70.04%
100.00%
93. Jiangxi Mahindra Yueda Tractor Company Limited ...................
China
45.58%
45.58%
89.37%
89.37%
94. Mahindra Gears Cyprus Limited....................................................
Cyprus
53.34%
53.34%
100.00%
100.00%
95. Bristlecone GmbH............................................................................
Germany
78.38%
79.10%
100.00%
100.00%
96. Mahindra Engineering GmbH........................................................
Germany
99.87%
99.92%
100.00%
100.00%
97. Mahindra Forgings Europe AG (upto 3rd October, 2013)............
Germany
52.97%
100.00%
161
Country of
Incorporation
98. Gesenkschmiede Schneider GmbH (upto 3rd October, 2013)......
interest*
as at
31-03-2014
Germany
as at
31-03-2013

where different
as at
31-03-2014
52.97%
as at
31-03-2013
100.00%
99. JECO-Jellinghaus GmbH (upto 3 October, 2013).......................
Germany
52.97%
100.00%
100. Falkenroth Umformtechnik GmbH (upto 3rd October, 2013)......
Germany
52.97%
100.00%
101. Schneweiss & Co. GmbH (upto 3rd October, 2013)....................
Germany
52.97%
100.00%
102. MHR Hotel Management GmbH (upto 28 November, 2013)...
Germany
59.54%
75.00%
103. Mahindra Europe S.r.l.....................................................................
Italy
100.00%
80.00%
104. Mahindra Graphic Research Design S.r.l.......................................
Italy
100.00%
100.00%
105. Metalcastello S.p.A.........................................................................
Italy
51.00%
51.00%
rd
th
106. Mahindra Racing S.r.l......................................................................
Italy
100.00%
100.00%
107. Ssangyong Motor Company...........................................................
South Korea
73.23%
70.04%
108. Mahindra Overseas Investment Company (Mauritius) Limited...
Mauritius
100.00%
100.00%
109. Mahindra-BT Investment Company (Mauritius) Limited.............
Mauritius
57.00%
57.00%
110. Mahindra Forgings International Limited (upto 3 October, 2013)..
Mauritius
rd
95.61%
95.61%
52.97%
100.00%
52.97%
100.00%
111. Mahindra Forgings Global Limited (upto 3 October, 2013).....
Mauritius
112. Mahindra Gears International Limited.........................................
Mauritius
100.00%
100.00%
113. Mahindra Gears Global Limited.....................................................
Mauritius
53.34%
53.34%
114. Bristlecone (Malaysia) Sdn. Bhd....................................................
Malaysia
78.38%
79.10%
100.00%
100.00%
115. Heritage Bird (M) Sdn. Bhd...........................................................
Malaysia
75.64%
79.38%
100.00%
100.00%
116. Ssangyong European Parts Center B.V.........................................
Netherlands
73.23%
70.04%
100.00%
100.00%
117. Bristlecone (Singapore) Pte. Limited.............................................
Singapore
78.38%
79.10%
100.00%
100.00%
118. Mahindra & Mahindra South Africa (Proprietary) Limited........
South Africa
100.00%
100.00%
119. Bristlecone International AG..........................................................
Switzerland
78.38%
79.10%
100.00%
100.00%
120. Mahindra MiddleEast Electrical Steel Service Centre (FZC) .......
UAE
90.00%
90.00%
121. Mahindra Emirates Vehicle Armouring FZ-LLC.............................
UAE
51.00%
51.00%
122. Bristlecone UK Limited...................................................................
U.K.
78.38%
79.10%
100.00%
100.00%
123. Stokes Group Limited (upto 3 October, 2013)...........................
U.K.
52.93%
99.92%
124. Stokes Forgings Dudley Limited (upto 3rd October, 2013)..........
U.K.
52.93%
100.00%
125. Stokes Forgings Limited (upto 3rd October, 2013).......................
U.K.
52.93%
100.00%
126. Mahindra Engineering Services (Europe) Limited.......................
U.K.
99.87%
99.92%
127. Mahindra USA Inc...........................................................................
U.S.A.
100.00%
100.00%
128. Bristlecone Inc.................................................................................
U.S.A.
78.38%
129. Mahindra Holidays and Resorts USA Inc......................................
U.S.A.
130. Mahindra Technologies Services Inc.............................................

131. Mahindra Tractor Assembly Inc. ...................................................
rd
rd
100.00%
100.00%
79.10%
100.00%
100.00%
75.64%
79.38%
100.00%
100.00%
U.S.A.
99.87%
99.92%
100.00%
100.00%
100.00%
U.S.A.
100.00%
132. Mahindra North American Technical Center, Inc.

(w.e.f. 18th December, 2013)...........................................................
U.S.A.
100.00%
133. Infinity Hospitality Group Company Limited...............................
Thailand
55.97%
58.73%
100.00%
100.00%
134. MH Boutique Hospitality Limited..................................................
Thailand
37.07%
38.90%
49.00%
49.00%
* excluding shares issued to ESOP Trusts of the respective entities/their holding companies but not allotted to employees as per the Guidance
Note on Accounting for Employee Share Based Payments issued by The Institute of Chartered Accountants of India.
162
(b) Interests in Joint Ventures :

The Groups interests in jointly controlled entities of the Group are :
Name of the Entity
Country of
Incorporation
Percentage of ownership
interest as at 31-03-2014
1.
Mahindra Sona Limited...................................................................
India
29.77%
29.77%
2.
Mahindra Water Utilities Limited **..............................................
India
50.00%
50.00%
3.
Mahindra Inframan Water Utilities Private Limited **................
India
50.00%
50.00%
4.
Mahindra Solar One Private Limited # $.......................................
India
26.00%
26.00%
5.
Mahindra Homes Private Limited (Formerly known as Watsonia

Developers Limited) (w.e.f 20 th July, 2013) ^................................
India
50.00%
6.
Mahindra Finance USA LLC @.........................................................
U.S.A.
49.00%
7.
Arabian Dreams Hotel Apartments LLC (w.e.f 5 April, 2013).
U.A.E.
49.00%
th
49.00%
** Shareholding is through a subsidiary, Mahindra Infrastructure Developers Limited.

# Shareholding is through a subsidiary, Mahindra Holdings Limited.
@ Shareholding is through a subsidiary, Mahindra & Mahindra Financial Services Limited.
$ Mahindra Solar One Private Limited has two subsidiaries; Mahindra Suryaprakash Private Limited where it holds 69.90% and Mahindra
Suryaurja Private Limited where it holds 100%.
^ Shareholding is through a subsidiary, Mahindra Lifespace Developers Limited.
Shareholding is through a subsidiary, Mahindra Holidays & Resorts India Limited.
The financial statements of the Joint Ventures are drawn upto 31st March, 2014.
(c) Investments in Associates :

The Groups Associates are :
1.
Mahindra Construction Company Limited....................................
Country of
Incorporation
India
2.
Officemartindia.com Limited..........................................................
India
50.00%
50.00%
3.
Rathna Bhoomi Enterprises Private Limited..................................
India
25.53%
25.53%
4.
Kota Farm Services Limited.............................................................
India
45.00%
45.00%
45.00%
45.00%
Name of the Entity
37.49%
43.83%
5.
Mriyalguda Farm Solution Limited.................................................
India
45.00%
6.
Mega One Stop Farm Services Limited..........................................
India
45.00%
7.
Mahindra Composites Limited (upto 3 October, 2013)..............
India
rd
35.37%
8.
Swaraj Engines Limited....................................................................
India
33.22%
9.
Mahindra & Mahindra Contech Limited........................................
India
35.16%
10. Vayugrid Marketplace Services Private Limited

(upto 11th June, 2013).......................................................................
India
11. PSL Media & Communications Limited..........................................
India
36.12%
36.12%
12. Tech Mahindra Limited....................................................................
India
26.01%
47.39%
13. Mahindra CIE Automotive Limited (formerly known as

Mahindra Forgings Limited) (w.e.f 4th October, 2013).................
India
0.32%
14. CIE Automotive, S.A. (w.e.f 4th October, 2013).............................
Spain
13.50%
15. Kismat Developers Private Limited (w.e.f 9 September, 2013)..
India
42.86%
16. Topical Builders Private Limited (w.e.f 9 September, 2013)......
India
50.00%
th
th
33.22%
35.16%
13.73%
The financial statements of the Associates are drawn upto 31st March, 2014, other than for CIE Automotive, S.A. where it is upto
31st December, 2013.
163
2.
Significant Accounting Policies :
(A) Basis of Accounting :
The financial statements are prepared in accordance with the generally accepted accounting principles in India and comply with the
Accounting Standards notified under the Companies Act, 1956 and the relevant provisions thereof.

(B) Tangible Assets :
(a) (i) Tangible assets are carried at cost less depreciation except as stated in (ii) below. Cost includes financing cost relating to
borrowed funds attributable to the construction or acquisition of qualifying tangible assets upto the date the assets are ready
for use. Where the acquisition of depreciable tangible assets are financed through long term foreign currency loans (having a
term of 12 months or more at the time of their origination) the exchange differences on such loans are added to or subtracted
from the cost of such depreciable tangible assets.
When an asset is scrapped or otherwise disposed off, the cost and related depreciation are removed from the books of account
and resultant profit (including capital profit) or loss, if any, is reflected in the Statement of Profit and Loss.

(ii) Land and Buildings, of the parent company had been revalued as at 31st October, 1984 at depreciated replacement values on
the basis of a valuation made by a firm of Chartered Surveyors and Valuers. The indices, if any, used are not stated in the
valuation.
(b) (i) Leasehold land is amortised over the period of the lease.
(ii) Depreciation on assets is calculated on Straight Line Method over its useful life estimated by management or on the basis of
depreciation rates prescribed under respective local laws.
(iii) Depreciation charge for each year is after deducting the amount representing the depreciation on the increase due to
revaluation of Land and Buildings, transferred from the Revaluation Reserve.
(C) Intangible Assets :
Intangible Assets are initially measured at cost and amortised so as to reflect the pattern in which the assets economic benefits are
consumed.

(a) Technical Knowhow :
The expenditure incurred is amortised over the estimated period of benefit, not exceeding six years commencing with the year of
purchase of the technology.

(b) Development Expenditure :
The expenditure incurred on technical services and other project/product related expenses are amortised over the estimated period
of benefit, not exceeding five years.

(c) Software Expenditure :
The expenditure incurred is amortised over three financial years equally commencing from the year in which the expenditure
is incurred.

(d) Websites :
(e) Vacation Ownership :
The expenditure incurred is amortised over the estimated period of benefit, not exceeding five years.
The expenditure incurred on vacation ownership is amortised over a period of ten years.
(f) Trademarks :
The expenditure incurred is amortised over the estimated period of benefit, not exceeding ten years.

(g) Non-Compete Fees :

Non-Compete payments are amortised equally over the estimated period of benefit, not exceeding ten years.

(D) Impairment of Assets :
The carrying value of assets/cash generating units at each balance sheet date are reviewed for impairment. If any indication of impairment
exists, the recoverable amount of such assets is estimated and impairment is recognised, if the carrying amount of these assets exceeds
their recoverable amount. The recoverable amount is the greater of the net selling price and their value in use. Value in use is arrived
at by discounting the future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its
useful life to their present value based on an appropriate discount factor. When there is indication that an impairment loss recognised
for an asset in earlier accounting periods no longer exists or may have decreased, such reversal of impairment loss is recognised in the
Statement of Profit and Loss, except in case of revalued assets.
164
(E) Investments :
Long term investments, other than in Associates, are carried at cost. However, provision for diminution in value is made to recognise a
decline other than temporary, in the value of investments. Current investments are valued at the lower of cost and fair value, determined
by category of investment. Investments in Associates are accounted using the equity method.

(F) Inventories :
Inventories are stated at cost or net realisable value, whichever is lower. Cost is arrived at on a weighted average method and includes,
where appropriate, manufacturing overheads and excise duty. Cost of the inventory, includes interest, where appropriate, for long
term projects.

(G) Foreign Exchange Transactions :

Transactions in foreign currencies (other than firm commitments and highly probable forecast transactions) are recorded at the
exchange rates prevailing on the date of transaction. Monetary items are translated at the year-end rates. The exchange difference
between the rate prevailing on the date of transaction and on the date of settlement as also on translation of monetary items at
the end of the year (other than those relating to long term foreign currency monetary items) is recognised as income or expense, as
the case may be.
Exchange differences relating to long term foreign currency monetary items, to the extent they are used for financing the acquisition
of depreciable tangible assets are added to or substracted from the cost of such depreciable tangible assets and the balance
accumulated in Foreign Currency Monetary Item Translation Difference Account and amortised over the balance term of the long term
monetary item.
Any premium or discount arising at the inception of a forward exchange contract is recognised as income or expense over the life of the
contract, except in the case where the contract is designated as a cash flow hedge.

(H) Derivative Instruments and Hedge Accounting :

The Company uses foreign currency forward contracts and currency options to hedge its risks associated with foreign currency
fluctuations relating to certain firm commitments and highly probable forecast transactions. The Company does not hold derivative
financial instruments for speculative purposes. The Company has applied to such contracts the hedge accounting principles set
out in Accounting Standard 30 Financial Instruments : Recognition and Measurement (AS 30) by marking them to market at each
reporting date.
Changes in the fair value of the contracts that are designated and effective as hedges of future cash flows are recognised directly in
Hedging Reserve Account and the ineffective portion is recognised immediately in the Statement of Profit and Loss.

(I) Revenue Recognition :
(a) Sale of products and services including export benefits thereon are recognised when the products are shipped or services rendered.
Excise duty recovered on sales is included in Revenue from Operations.
(b) Long Term Contracts and Property Development Activity :
Income from real estate sales is recognised on the transfer of all significant risks and rewards of ownership to the buyers and it is not
unreasonable to expect ultimate collection and no significant uncertainty exists regarding the amount of consideration. However
if, at the time of transfer substantial acts are yet to be performed under the contract, revenue is recognised on proportionate basis
as the acts are performed, i.e. on the percentage of completion basis. Revenues from real estate projects are recognised only when
the actual project costs incurred is at least 25% of the total estimated project costs including land and when at least 10% of the
sales consideration is realised.
In accordance with the Guidance Note on Accounting for Real Estate Transactions (Revised 2012) issued by the Institute of Chartered
Accountants of India, in case of projects commencing on or after 1st April, 2012 or in case of projects which have already commenced
but where revenue is being recognised for the first time on or after 1st April, 2012, revenues will be recognized from these real
estate projects only when;

i. the actual construction and development cost incurred is at least 25% of the total construction and development cost (without
considering land cost) and
ii.
iii. where 25% of the total saleable area of the project is secured by contracts of agreement with buyers.
when at least 10% of the sales consideration is realised and
Income from long term contracting assignments is also recognised on the percentage of completion basis. As the long term contracts
necessarily extend beyond one year, revision in costs and revenues estimated during the course of the contract are reflected in the
accounting period in which the facts requiring the revision become known. Any expected loss on a project is recognised in the year
in which costs incurred together with the balance costs to completion are likely to be in excess of the estimated revenues from
project. Unbilled costs are carried as construction work-in-progress.
165
Determination of revenues under the percentage of completion method necessarily involves making estimates by the Company,
some of which are of a technical nature, concerning, where relevant, the percentages of completion, costs to completion, the
expected revenues from the project/activity and the foreseeable losses to completion.
Project Management Fees receivable on fixed period contracts is accounted over the tenure of the contract/agreement. Where
the management fee is linked to the input costs, revenue is recognised as a proportion of the work completed based on progress
claims submitted. Where the management fee is linked to the revenue generation from the project, revenue is recognised on the
percentage of completion basis.

(c) Lease and Rental Income :
Land lease premium is recognised as income upon creation of leasehold rights in favour of the Lessee or upon an agreement to
create leasehold rights with handing over of possession.
Property lease rental, income from operation and maintenance charges and water charges are recognised on an accrual basis as per
terms of the agreement with the lessees.

(d) Income from Loan :
Interest Income from loan transactions is accounted for by applying the interest rate implicit in such contracts. Service charges,
documentation charges and other fees on loan transactions are recognised at the commencement of the contract. Subvention
received from dealers/manufacturers on retail cases is booked over the period of the contract.

(e) Vacation Ownership Business :
The activity of selling vacation ownership and providing holiday facilities to members for a specified period each year, over a
number of years, for which membership fee is collected either in full up front, or on a deferred payment basis. Admission fee, which
is non-refundable, is recognized as income on admission of a member. Entitlement fee (disclosed under Advance towards Members
facilities), which entitles the vacation ownership member for the vacation ownership facilities over the membership usage period, is
recognized as income equally over the usage period. Requests for cancellation of membership is accounted for when it is accepted.
In respect of instalments considered doubtful of recovery by the management, the same is treated as a cancellation and accounted
for accordingly.

(f) Income from Assignment :
Receivables under the assignment transactions are de-recognized in the Balance Sheet when they are sold subject to the portion of
loan assets which is required under the Minimum Retention Criteria and reflected as Loans and Advances. The amount of profit in
cash on such transactions is held under an accounting head styled as Cash profit on loan transfer transactions pending recognition
maintained on an individual transaction basis. The amortisation of cash profit arising out of loan assignment transaction is done at
the end of every financial year based on the prescribed formula.

(g)
Dividends from investments are recognised in the Statement of Profit and Loss when the right to receive payment is
established.
(J) Government Grants :
The Company, directly or indirectly through a consortium of Mahindra Group Companies, is entitled to various incentives from government
authorities in respect of manufacturing units located in developing regions. The Company accounts for its entitlement as income on
accrual basis.

(K) Employee Benefits :
In respect of Defined Contribution Plan/Defined Benefit Plan/Long term Compensated Absences.
Groups contributions paid/payable during the year to Superannuation Fund, ESIC and Labour Welfare Fund are recognised in the
Statement of Profit and Loss.
Contributions to Provident Fund are made to Trusts administered by group companies or Regional Provident Fund Commissioners and are
charged to Statement of Profit and Loss as incurred. The Company is liable for the contribution and any shortfall in interest between the
amount of interest realised by the investment and the interest payable to members at the rate declared by the Government of India.

Companys liability towards gratuity, long term compensated absences, post retirement medical benefit and post retirement
housing allowance schemes are determined by independent actuaries, using the projected unit credit method. Past services are
recognised on a straight line basis over the average period until the benefits become vested. Actuarial gains and losses are recognised
immediately in the Statement of Profit and Loss as income or expense. Obligation is measured at the present value of estimated future
cash flows using a discounted rate that is determined by reference to the market yields at the Balance Sheet date on Government
Bonds where the currency and terms of the Government Bonds are consistent with the currency and estimated terms of the defined
benefit obligation.
166
In respect of Employee Stock Option Scheme :
The compensation cost of stock options granted to employees is measured by the Intrinsic Value Method. The intrinsic value, which is the
excess of the market price of the underlying equity shares as of the date of the grant over the exercise price of the option, is recognised
and amortised on straight line basis over the vesting period.

(L) Borrowing Costs :
All borrowing costs are charged to the Statement of Profit and Loss except :
(i) Borrowing costs that are attributable to the acquisition or construction of assets that necessarily take a substantial period of time
to get ready for their intended use, which are capitalised as part of the cost of such assets.
(ii) Expenses incurred on raising long term borrowings are amortised over the period of borrowings. On early buyback, conversion or
repayment of borrowings, any unamortised expenditure is fully written off in that year.
(M) Product Warranty :
In respect of warranties given by the Company on sale of certain products, the estimated costs of these warranties are accrued at the
time of sale. The estimates for accounting of warranties are reviewed and revisions are made as required.

(N) Leases :

The Companys significant leasing arrangements are in respect of operating leases for premises (residential, office, stores,
godowns, computer hardware etc.). The leasing arrangements, which are not non-cancellable, range between eleven months and five
years generally, and are usually renewable by mutual consent on agreed terms. The aggregate lease rentals payable are charged as rent.

(O) Taxes on Income :

Current Tax is determined as the amount of tax payable in respect of taxable income for the year. Deferred Tax is recognised,
subject to consideration of prudence, on timing differences, being the difference between taxable income and accounting income
that originate in one period and are capable of reversal in one or more subsequent periods. Deferred Tax Assets arising on
account of unabsorbed depreciation or carry forward of tax losses are recognised only to the extent that there is virtual certainty
supported by convincing evidence that sufficient future taxable income will be available against which such Deferred Tax Assets can
be realised.
Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment
to future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income tax
against which the MAT paid will be adjusted.

(P) Segment Reporting :
The accounting policies adopted for segment reporting are in line with the accounting policies of the Group. Segments are identified
having regard to the dominant source and nature of risks and returns and internal organisation and management structure.

Revenues and expenses have been identified to the segments based on their relationship to the business activity of the segment.
Income/Expenses relating to the enterprise as a whole and not allocable on a reasonable basis to business segments are reflected as
unallocated corporate income/expenses. Inter-segment transfers are at prices which are generally market led.
3.
Certain changes in Group Structure : During the year ended 31st March, 2014, the following changes in Group structure have taken place and
the same have been appropriately dealt with in the Consolidated Financial Statements.

(i) The Board of Directors of Mahindra & Mahindra Limited (M&M) during the year approved entering into a transaction in the Auto
Components business with CIE Automotive S.A., Spain (CIE). The transaction is to be completed in parts.
The first part involving the following has been completed during the year :
(a) M&M transferred its entire shareholding in Mahindra Gears & Transmissions Private Limited at a fair value determined by an
independent valuer to its wholly owned subsidiary Mahindra Investments (India) Private Limited (MIPL). The excess of Rs. 23.62
crores over the cost has not been recognised in these results having regard to the principles of prudence and the substance of this
transaction, and will be dealt with on completion of the related parts.
(b) M&M sold 99.4% of its holdings in Mahindra CIE Automotive Limited (MCIE) (formerly known as Mahindra Forgings Limited) and
100% of its holdings in both Mahindra Composites Limited (MCL) and Mahindra Hinoday Industries Limited (MHIL) to one of the
subsidiaries of CIE at a price that is lower than the carrying value of these investments by Rs. 147.76 crores, which amount has
been debited to the Investment Fluctuation Reserve (IFR). IFR is expected to be credited, having regard to the substance of the
transaction, with an amount not less than the amount debited above, when the second part of the transaction, described below,
takes place.
167
(c) Mahindra Holdings Limited (MHL), a wholly owned subsidiary of M&M sold 100% of its holding in MCL to one of the subsidiaries
of CIE.
(d) Consequently MHIL, Mahindra Forgings International Limited, Mahindra Forgings Europe AG, Gesenkschmiede Schneider GmbH,
JECO-Jellinghaus GmbH, Falkenroth Umformtechnik GmbH, Stokes Group Limited, Stokes Forgings Dudley Limited, Stokes Forgings
Limited, Mahindra Forgings Global Limited, Schneweiss & Co. GmbH ceased to be subsidiaries of M&M.
MCL ceased to be an associate of M&M.
MCIE ceased to be a subsidiary and became an associate of M&M.
(e) M&M acquired a 13.5% stake in CIE through its wholly owned subsidiary Mahindra Overseas Investment Company (Mauritius)
Limited (MOICML), making it an associate of the Company, in view of its contractual representation on the Board of CIE.
(f) Completion of open offer by CIE through its subsidiary in both MCIE and MCL.
The second part of the transaction involves the merger of Mahindra Ugine Steel Company Limited, Mahindra Gears International
Limited and Mahindra Investments (India) Private Limited, and MHIL, MCL and a CIE subsidiary with MCIE effective 1st October, 2013
through Schemes of Arrangement under Sections 391 to 394 of the Companies Act, 1956.

On completion of both parts above :
(a) CIE will hold approximately 53% in MCIE.
(b) M&M will hold 20.04% in MCIE, and
(c) M&M, through its wholly owned subsidiary MOICML, will hold 13.5% in CIE.
(ii)
Tech Mahindra Limited (TML) : During the year, consequent to the Scheme of Amalgamation and Arrangement (the Scheme),
Venturbay Consultants Private Limited (Venturbay), CanvasM Technologies Limited (CanvasM) and Mahindra Logisoft Business
Solutions Limited (Logisoft), the wholly owned subsidiaries of TML, and Satyam Computer Services Limited (Satyam) an associate of
TML (through Venturbay) and C&S System Technologies Private Limited (C&S) a wholly owned subsidiary of erstwhile Satyam, merged
with TML with effect from April 1, 2011 (the appointed date). As a result M&Ms holding in TML decreased from 47.39% to 26.01%.
(iii)
Mahindra Logistics Limited (MLL) : During the year, consequent to a sale of part of its ownership interest, M&Ms holding in MLL
decreased from 100% to 88.6%.
(iv)
Mahindra Sanyo Special Steel Private Limited (MSSPL) : During the year, M&M acquired from Mahindra Ugine Steel Company Limited
(MUSCO), MUSCOs share in its 51% subsidiary MSSPL, increasing inter alia the effective holding in NSSPL from 25.85% to 51%.
(v)
M
ahindra Two Wheelers Limited (MTWL) : During the year, consequent to a sale of part of its holding in MTWL and subsequent
additional investment in MTWL , M&Ms holding reduced from 93.03% to 88.46%.
(vi)
M
ahindra Homes Private Limited (MHPL) (a subsidiary of Mahindra Lifespaces Developers Limited (MLDL)) : During the year MHPL
became MLDLs Joint venture resulting in a decrease in M&Ms holding from 51.04% to 50% w.e.f 20 th July, 2013

(vii)
Mahindra Reva Electric Vehicles Private Limited (MREVA) : During the year M&M further invested in MREVA thereby increasing the
holding from 67.90% to 73.42%.
(viii) Mahindra Trucks and Buses Limited (MTBL) : In accordance with the Scheme of Arrangement (The Scheme) as sanctioned by
Honourable High Court of Bombay vide its order dated 7th March, 2014, the entire assets and liabilities, duties and obligations of the
Trucks Business of MTBL was transferred to and vested in M&M, from 1st April, 2013 (the appointed date). The scheme became effective
on 30 th March, 2014.
The current years figures are to that extent not strictly comparable to those of the previous year.
168
4.
Share Capital :
Rupees crores
2014
2013
1,20,00,00,000 Ordinary (Equity) Shares of Rs. 5 each....................................................................
600.00
600.00
25,00,000
Unclassified Shares of Rs. 100 each.........................................................................
25.00
25.00
625.00
625.00
307.95
306.99
2,55,69,113
(2013 : 2,36,57,485) Ordinary (Equity) Shares of Rs. 5 each fully paid up issued
to ESOP Trust but not allotted to employees .......................................................
12.79
11.83
Adjusted : Issued and Subscribed Share Capital..................................................................................
295.16
295.16
Authorised :

61,58,92,384 (2013 : 61,39,80,756) Ordinary (Equity) Shares of Rs. 5 each fully paid up.........
Less :
(A) Reconciliation of number of Ordinary (Equity) Shares and amount outstanding :

2014
2013
No. of shares
Rupees crores
No. of shares
Rupees crores
61,39,80,756
306.99
61,39,74,839
306.99

Balance as at the beginning of the year...........................
Add :
Shares issued under Schemes of Arrangement................
5,917
Shares issued to ESOP Trust................................................
19,11,628
0.96
Balance as at the end of the year......................................
61,58,92,384
307.95
61,39,80,756
306.99
Shares issued to ESOP Trust but not allotted to

Employees [Note 5(O)]........................................................
2,55,69,113
12.79
2,36,57,485
11.83
Adjusted : Issued and Subscribed Share Capital...............
59,03,23,271
295.16
59,03,23,271
295.16
Less :
(B) The Ordinary (Equity) Shares of the Company rank pari-passu in all respects including voting rights and entitlement to dividend.
(C) Details of Ordinary (Equity) Shares held by shareholders holding more than 5% of the aggregate shares in the Company :
2014
Name of the Shareholder
No. of shares
No. of shares
%
shareholding
(i) Prudential Management and Services Pvt. Ltd........
7,07,60,790
11.49
6,99,86,970
11.40
(ii) Life Insurance Corporation of India...........................
7,00,77,205
11.38
6,52,03,016
10.62
(iii) M&M Benefit Trust......................................................
5,18,35,214
8.42
5,18,35,214
8.44
3,29,49,467
5.37
(iv) The Bank of New York Mellon (for GDR holders)...

2013
%
shareholding
(D)
Issued and Subscribed Share Capital includes an aggregate of 40,647 (2013 : 6,61,99,551) Ordinary (Equity) Shares of Rs. 5 each allotted as
fully paid-up pursuant to Schemes of Arrangement without payment having been received in cash, for a period of five years immediately
preceding the end of the financial year.
169
5.

Rupees crores
(A)

Capital Reserve :
Add :
(i) Consequent to change in Groups Interest.........................................................................
(ii) Consequent to sale/disposal of subsidiaries........................................................................
Less :
(i) Refund of grant......................................................................................................................
(ii) Transfer on sale of entity......................................................................................................
(B)

Capital Reserve on Consolidation :

Add :
(i) On acquisition/increase in stake in subsidiaries during the year......................................
Less :
(i) Consequent to sale/disposal of subsidiaries........................................................................
(ii) Consequent to change in Groups Interest.........................................................................
(C)

Securities Premium Account :

Add :
(i) On account of issue of Ordinary (Equity) Shares to ESOP Trust.......................................
(ii) On account of exercise of employee stock options............................................................
(iii) Consequent to change in Groups Interest.........................................................................
Less :
Applied, in accordance with Section 78 of the Companies Act, 1956, towards :
(i)
Writing-off of debenture issue expenses [Net of Tax of Rs. 0.06 crores (2013 :
Rs. 0.05 crores)]......................................................................................................................
(ii) Consequent to change in Groups Interest.........................................................................
2014
2013
23.49
27.37
0.05
0.28
23.54
27.65
3.83
0.33
4.16
23.54
23.49
1,297.77
1,290.40
18.29
9.96
1,316.06
1,300.36
111.91
2.59
111.91
2.59
1,204.15
1,297.77
2,351.02
2,333.54
182.94
0.09
25.88
2,534.05
2,359.42
0.12
0.10
8.30
2,533.93
2,351.02
Less :
Premium on shares issued to ESOP Trust but not allotted to employees [Note 5(O)]...........
259.61
76.67
2,274.32
2,274.35
(D) Revaluation Reserve :
170

Less :
(i) Adjusted against depreciation for the year........................................................................
(ii) Adjusted in respect of revalued Land and Buildings sold/demolished............................
13.99
14.35
0.32
0.35
0.01
13.67
13.99
5.

Rupees crores
2014
2013
2,319.79
2,340.03
472.43
473.43
(E) General Reserve :

Add :
(i) Transfer from Surplus in Statement of Profit and Loss......................................................
(ii) On account of employee stock options*.............................................................................
51.44
22.73
(iii) Transfer from Investment Fluctuation Reserve...................................................................
147.76
1.09
(iv) Transfer from Debenture Redemption Reserve..................................................................
0.20
(v) Consequent to change in Groups Interest.........................................................................
4.20
2,995.62
2,837.48
Less :
317.69
(ii) Transfer back to Investment Fluctuation Reserve...............................................................
0.52
200.00
(iii) Consequent to the Scheme of Arrangement......................................................................
119.82
2,875.28
2,319.79
Add :
Bonus shares issued to ESOP Trust but not allotted to employees [Note 5(O)].....................
1.08
1.08
2,876.36
2,320.87
*relating to shares other than those allotted by the Company to the ESOP Trust.
153.57
244.44
110.04
108.68
263.61
353.12
(F) Debenture Redemption Reserve :

Add :
(i) Transfer from Surplus in Statement of Profit and Loss (Net)............................................
Less :
199.35
(ii) Transfer to General Reserve..................................................................................................
0.20
263.61
153.57
269.68
207.99
(G) Investment Fluctuation Reserve :

Add :
(i) Adjustment to Deferred Tax on assets relating to a product development project......
66.29
(ii) Transfer back from General Reserve....................................................................................
0.52
200.00
270.20
474.28
Less :
(i) Provision made during the year [Net of tax of Rs. Nil (2013 : Rs. 1.42 crores)].............
3.51
(ii) Transfer to General Reserve [Net of tax of Rs. Nil (2013 : Rs. 0.45 crores)]....................
147.76
1.09
(iii) Provision for impairment of goodwill on consolidation....................................................
200.00
122.44
269.68
171
5.

Rupees crores
2014
2013
90.32
90.32
(H) Capital Redemption Reserve :

Balance as at the beginning and end of the year .....................................................................
(I) Statutory Reserve (under regulatory compliances) :


Add :
Transfer from Statement of Profit and Loss................................................................................
Less :
Consequent to change in Groups Interest..................................................................................
395.37
301.38
96.05
93.99
0.09
491.33
395.37

Balance as at the beginning of the year ....................................................................................

Consequent to change in Groups Interest..................................................................................
Gain/(Loss) on mark to market of hedging instruments designated and effective as hedges
of future cash flows (net of tax)..................................................................................................
(72.82)
(246.42)
286.81
0.96
(113.21)
(71.86)
(72.82)
(K)

Foreign Currency Translation Reserve :

Add :
On currency translation during the year (Net)...........................................................................
592.51
309.73
(L)

Employee Stock Options Outstanding :

Add :
On account of options granted during the year.........................................................................
Less
(i)
(ii)
(iii)
(J) Hedging Reserve Account :
344.13
282.78
936.64
592.51
244.15
257.77
39.40
46.61
283.55
304.38
51.44
9.00
25.88
22.73
11.62

Less :
Deferred Employee Compensation Expense...............................................................................
223.11
244.15
84.41
112.69
138.70
131.46
*relating to shares other than those allotted by the Company to the ESOP Trust.
(94.51)
(66.40)
(92.45)
(56.34)
:
Transfer to Securities Premium Account on exercise of options during the year...........
Transfer to General Reserve on account of employee stock options*.............................
For options lapsed during the year......................................................................................
(M) Foreign Currency Monetary Items Translation Difference Account :


Add :

Arising on revaluation of long term monetary assets and liabilities (Net).............................

172
(186.96)
(122.74)
Less :
Amortisation during the year........................................................................................................
65.95
28.23
(121.01)
(94.51)
5.

Rupees crores
2014
2013
12,269.49
9,528.71
79.49
4,666.93
17,015.91
240.84
4,099.20
13,868.75
110.04
472.43
96.05
545.47
53.66
862.25
103.56
2.48
0.48
108.68
473.43
93.99
32.01
798.17
92.98
(N)

Surplus in Statement of Profit and Loss :

Add :
(ii) Profit for the year..................................................................................................................
Less :
(i) Transfer to Debenture Redemption Reserve (Net).............................................................
(ii) Transfer to General Reserve..................................................................................................
(iii) Transfer to Statutory Reserve...............................................................................................
(iv) Consequent to change in Groups Interest.........................................................................
(v) Groups share of subsidiaries and associates dividend tax...............................................
(vi) Proposed Dividend [Rs. 14.00 per share (2013 : Rs. 13.00 per share)].............................
(vii) Income-tax on Proposed Dividend.......................................................................................
(viii) Dividend for 2012-13 paid on shares issued in June 2013.................................................
(ix) Income-tax on Dividend Paid................................................................................................
2,246.42
1,599.26
14,769.49
12,269.49
Total Reserves and Surplus *........................................................................................................
23,011.70
19,665.54
* [including Group Share of Joint Ventures Rs. 98.13 crores (2013 : Rs. 74.80 crores)]
(O) The Guidance Note on Accounting for Employee Share-based Payments issued by The Institute of Chartered Accountants of India
requires that shares allotted to a Trust but not transferred to employees be reduced from Share Capital and Reserves and Surplus.
Accordingly, the Company has reduced the Share Capital by Rs. 11.71 crores (2013 : Rs. 10.75 crores) and Securities Premium Account by
Rs. 259.61 crores (2013 : Rs. 76.67 crores) for the 2,34,16,888 shares of Rs. 5 each (2013 : 2,15,05,260 shares of Rs. 5 each) held by the
Trust pending transfer to the eligible employees.
The Share Capital of the Company has also been reduced and the General Reserve increased by Rs. 1.08 crores (2013 : Rs. 1.08 crores)
for the 21,52,225 bonus shares of Rs. 5 each (2013 : 21,52,225 bonus shares of Rs. 5 each) issued by the Company in September, 2005 to
the Trust but not yet transferred by the Trust to the employees.
The above monies which are treated as advance received from the Trust, is included under Other Current Liabilities and Other Long Term
Liabilities.
6. Long Term Borrowings : (contd.)
Rupees crores
(A)

Secured :
(i) Debentures/Bonds..................................................................................................................
(ii) Term Loan from Banks...........................................................................................................
(iii) Term Loan from Other Parties..............................................................................................
(iv) Other Loans.............................................................................................................................
Group Share of Joint Ventures......................................................................................................
2014
2013
4,628.53
11,280.98
478.19
11.58
16,399.28
549.23
4,496.27
8,963.96
390.84
1.36
13,852.43
273.69
16,948.51
14,126.12
(B)

Unsecured :
(i) Debentures/Bonds..................................................................................................................
(ii) Term Loan from Banks...........................................................................................................
(iii) Fixed Deposits.........................................................................................................................
(iv) Other Loans.............................................................................................................................
1,294.10
2,678.23
2,810.34
1,600.48
594.10
1,740.20
1,979.77
1,420.07
8,383.15
160.09
5,734.14
8,543.24
5,734.14
25,491.75
19,860.26
Secured borrowings are secured by a pari-passu charge on immovable properties of certain entities both present and future, subject to certain
exclusions and are also secured by pari-passu charge on the movable properties of certain entities including movable machinery, machinery
spares, tools and accessories, both present and future, subject to certain exclusions.
The borrowings carry varying rates of interest ranging from 0% to 14.35% and have maturities starting from 2014 and ending with 2063.
173
6. Long Term Borrowings : (contd.)

Rupees crores
2014
2013
Borrowings repayable schedule :

(a) Secured* :

(i) In the first year (Note 12)......................................................................................................
6,053.79
4,871.45
(ii) In the second year..................................................................................................................
6,107.42
6,165.95
(iii) In the third to fifth year........................................................................................................
10,719.50
7,729.90
(iv) Above five years.....................................................................................................................
121.59
230.27
23,002.30
18,997.57
*A
bove amount includes current maturities of long term debt in note 12 and Group
Share of Joint Ventures.
(b) Unsecured* :

(i) In the first year (Note 12)......................................................................................................
1,082.28
713.62
(ii) In the second year..................................................................................................................
1,519.14
941.53
(iii) In the third to fifth year........................................................................................................
4,637.48
3,339.67
(iv) Above five years.....................................................................................................................
2,386.62
1,452.94
9,625.52
6,447.76
*A
bove amount includes current maturities of long term debt in note 12 and Group
Share of Joint Ventures.
7A. Deferred Tax Liabilities (Net) :


Rupees crores
2014
2013
(i) On fiscal allowances on fixed assets............................................................................................
1,391.04
1,046.55
(ii) Others..............................................................................................................................................
129.63
108.83
1,520.67
1,155.38
Group Share of Joint Ventures.............................................................................................................
2.03
1.22
Total Deferred Tax Liabilities................................................................................................................
1,522.70
1,156.60
(i) On provision for employee benefits............................................................................................
159.59
158.77
(ii) On provision for doubtful debts/advances.................................................................................
23.55
19.21
(iii) Others..............................................................................................................................................
137.04
84.63
320.18
262.61
0.55
0.49
Total Deferred Tax Assets.....................................................................................................................
320.73
263.10
Net Deferred Tax Liabilities..................................................................................................................
1,201.97
893.50
174
7B. Deferred Tax Assets (Net) :


Rupees crores
2014
2013
(i) On fiscal allowances on fixed assets.............................................................................................
8.64
17.75
(ii) Others...............................................................................................................................................
1.24
8.77
9.88
26.52
Group Share of Joint Ventures..............................................................................................................
0.01
Total Deferred Tax Liabilities.................................................................................................................
9.88
26.53
(i) On provision for employee benefits.............................................................................................
9.72
10.22
(ii) On provision for doubtful debts/advances..................................................................................
276.09
205.87
(iii) On unabsorbed depreciation carried forward #.........................................................................
1.66
16.60
(iv) Others...............................................................................................................................................
100.90
132.08
388.37
364.77
3.18
0.12
Total Deferred Tax Assets......................................................................................................................
391.55
364.89
Net Deferred Tax Assets........................................................................................................................
381.67
338.36
# C
onsidered, as there are compensatory timing differences the reversal of which, will result in sufficient future taxable income against which
this can be realised.
8.
Other Long Term Liabilities :

Rupees crores
2014
2013
(i) Trade Payables ..............................................................................................................................
130.68
204.84
(ii) Advance towards vacation ownership membership facilities...................................................
1,393.07
1,253.11
(iii) Interest accrued but not due on borrowings.............................................................................
156.01
160.15
(iv) Others..............................................................................................................................................
705.14
485.30
2,384.90
2,103.40
3.20
2,388.10
2,103.40

Others include dealer deposits, advance from customers, payable for investments, gratuity payable and monies adjusted from share capital
and reserves & surplus on account of shares held by ESOP Trust pending transfer to the eligible employees.
175
9. Long Term Provisions :

Rupees crores
2014
2013
(i) Provision for Employee Benefits..................................................................................................
1,714.46
1,493.95
(ii) Provision for Estimated Loss/Expenses on Assignment ............................................................
67.57
155.64
(iii) Provision for Warranty [Note 31].................................................................................................
593.59
503.49
(iv) Provision for Standard assets [Note 31]......................................................................................
67.72
54.85
(v) Provision others..............................................................................................................................
145.30
40.31
2,588.64
2,248.24
1.48
3.39
2,590.12
2,251.63
10. Short Term Borrowings :

Rupees crores
2014
2013
(A) Secured :

(i) Loans repayable on demand from banks and cash credit accounts from banks...........
1,659.49
2,355.33
(ii) Other loans and advances....................................................................................................
430.34
57.78
2,089.83
2,413.11
287.90
309.76
2,377.73
2,722.87
Group Share of Joint Ventures.....................................................................................................
(B) Unsecured :

(i) Loans repayable on demand from banks...........................................................................
318.71
261.70
(ii) Fixed Deposits........................................................................................................................
60.06
34.33
(iii) Other loans and advances....................................................................................................
23.82
349.12
402.59
645.15
0.33
0.46
402.92
645.61
2,780.65
3,368.48
Group Share of Joint Ventures.....................................................................................................

Loans and Advances from Banks are secured by a first charge on certain current assets namely inventories, certain book debts, outstanding
monies, receivables, claims, etc. both present and future.
11. Trade Payables :
Rupees crores
2014
2013
(i) Acceptances....................................................................................................................................
2,820.76
2,714.53
(ii) Other Trade Payables....................................................................................................................
8,962.57
9,181.91
11,783.33
11,896.44
16.51
14.19
11,799.84
11,910.63
176
12. Other Current Liabilities :

Rupees crores
2014
2013
(i) Current maturities of long term debt.........................................................................................
6,894.39
5,482.31
(ii) Interest accrued but not due on borrowings.............................................................................
392.66
203.60
(iii) Interest accrued and due on borrowings....................................................................................
5.74
15.37
(iv) Advance towards vacation ownership membership facilities...................................................
75.11
115.44
(v) Dividend Payable...........................................................................................................................
12.43
11.83
(vi) Unclaimed matured deposits and interest accrued thereon....................................................
0.47
0.72
(vii) Other payables...............................................................................................................................
2,801.82
2,818.69
10,182.62
8,647.96
296.71
141.50
10,479.33
8,789.46
Group Share of Joint Ventures: Includes Current maturity of long term debt Rs. 241.68 crores
(2013 : Rs 102.76 crores)........................................................................................................................

Other payables mainly include advance from customers, capital creditors, government dues and taxes payable, gratuity payable and salary
deductions payable.
13. Short Term Provisions :

Rupees crores
2014
2013
(i) Provision for Employee Benefits..................................................................................................
310.21
253.49
(ii) Proposed Dividend.........................................................................................................................
862.25
798.17
(iii) Provision for Tax on Proposed Dividend.....................................................................................
103.56
92.98
(iv) Provision for Warranty [Note 31].................................................................................................
555.29
478.48
(v) Provision for Estimated Loss/Expenses on Assignment.............................................................
88.08
41.90
(vi) Provision for Standard assets [Note 31]......................................................................................
53.71
43.74
(vii) Provision for losses to Project Completion.................................................................................
10.23
10.23
(viii) Provision for Taxation...................................................................................................................
274.81
287.32
(ix) Others..............................................................................................................................................
239.73
27.35
2,497.87
2,033.66
0.67
1.10
2,498.54
2,034.76
177
178
22.07
70.85
12.07
18.42
353.73
482.23
14.05
15.49
1,445.96
1,788.99
16.24
22.66
41.46
36.05
163.65
131.91
46.64
99.70
100.33
2,215.57
2,666.93
92.53
96.97
2,308.10
2,763.90
570.94
547.08
6,661.29
5,965.39
64.97
52.96
22,010.77
19,553.06
112.64
88.58
217.29
189.71
1,109.71
1,020.36
56.82
56.82
424.58
361.35
1.34
1.34
33,843.87
30,207.88
43.70
698.53
33,887.57
30,906.41
Land Leasehold...........................
Buildings Freehold......................
Buildings Leasehold....................
Plant and Equipment Freehold
Plant and Equipment Leasehold
Office Equipment...........................
Furniture and Fixtures...................
Aircraft............................................
Vehicles Freehold........................
Vehicles Leasehold......................
Sub Total.........................................
Group Share of Joint Ventures....
Sub Total A.....................................
Additions
during the
year
2,613.52
2,371.23
Cost/
Professional
valuation as
at 31st March,
2013
Land Freehold..............................
A : Tangible Assets
14. Fixed Assets :
2,962.09
1,324.04
0.38
2,962.09
1,323.66
11.99
4.91
121.23
27.42
5.80
0.39
18.11
1.40
1,939.68
860.74
1.30
0.17
517.47
248.77
15.72
5.44
330.79
174.42
Other
Adjustments
during the
year
3,469.95
1,106.78
0.17
752.18
3,469.78
354.60
1.34
66.44
42.01
285.21
69.98
35.07
8.86
8.03
2,508.93
192.02
9.49
3.65
411.05
35.10
85.03
59.19
2.98
Deductions
and
Adjustments
during the
year
35,687.81
33,887.57
136.06
43.70
35,551.75
33,843.87
1.34
469.83
424.58
103.46
56.82
1,109.38
1,109.71
229.48
217.29
138.96
112.64
22,887.48
22,010.77
70.83
64.97
7,121.44
6,661.29
513.70
570.94
2,907.19
2,613.52
Cost/
Professional
valuation
as at 31st
March, 2014
16,096.96
14,467.52
11.94
368.45
16,085.02
14,099.07
0.14
0.14
188.55
164.35
6.83
3.64
673.97
627.12
94.15
76.48
67.18
59.06
13,238.07
11,595.27
24.89
18.35
1,750.22
1,523.15
41.02
31.51
Depreciation
upto 31st
March, 2013
1,801.22
1,651.14
6.12
33.13
1,795.10
1,618.01
56.61
49.54
5.37
3.19
94.16
90.11
26.17
22.22
8.73
7.06
1,419.78
1,266.89
11.74
9.46
163.27
160.45
9.27
9.09
Depreciation
for 2013-2014
817.33
21.70
0.10
389.64
817.23
(367.94)
0.14
40.87
25.34
117.59
43.26
23.29
4.55
(11.34)
(1.06)
601.90
(375.91)
4.65
2.92
27.71
(66.62)
12.42
(0.42)
Deductions and
Adjustments of
Depreciation
17,080.85
16,096.96
17.96
11.94
17,062.89
16,085.02
0.14
204.29
188.55
12.20
6.83
650.54
673.97
97.03
94.15
87.25
67.18
14,055.95
13,238.07
31.98
24.89
1,885.78
1,750.22
37.87
41.02
Depreciation
upto 31st
March, 2014
18,606.96
17,790.61
118.10
31.76
18,488.86
17,758.85
1.20
265.54
236.03
91.26
49.99
458.84
435.74
132.45
123.14
51.71
45.46
8,831.53
8,772.70
38.85
40.08
5,235.66
4,911.07
475.83
529.92
2,907.19
2,613.52
Net Balance
before
Impairment
as at 31st
March, 2014
2,548.67
2,259.63
2,548.67
2,259.63
7.86
8.13
30.08
28.25
0.15
0.04
1,470.51
1,300.32
0.86
0.24
1,039.21
922.65
Impairment
as at 31st
March, 2014
16,058.29
15,530.98
118.10
31.76
15,940.19
15,499.22
1.20
257.68
227.90
91.26
49.99
428.76
407.49
132.30
123.10
51.71
45.46
7,361.02
7,472.38
37.99
39.84
4,196.45
3,988.42
475.83
529.92
2,907.19
2,613.52
Net Balance
after
Impairment
as at 31st
March, 2014
Rupees crores
379.30
341.36
137.23
56.19
3.30
1.94
26.22
8.53
546.09
436.69
0.34
4.95
546.43
441.64
2,854.53
3,205.54
1,882.27
1,460.76
335.44
280.15
4.11
4.11
3.73
3.73
0.62
37.53
34.11
44.26
56.98
2,412.10
2,014.63
0.29
11.25
2,412.39
2,025.88
36,299.96
32,932.29
Development Expenditure.............
Computer Software........................
Websites...........................................
Non-Compete Fees..........................
Vacation Ownership.......................
Trademarks.......................................
Other Intangible.............................
Sub Total..........................................
Group Share of Joint Ventures.....
Sub Total B.......................................
Grand Total (A+B)...........................
0.04
28.67
Additions
during the
year
104.76
174.17
Cost/
Professional
valuation
as at 31st
March, 2013
Technical Knowhow........................
B : Intangible Assets
14. Fixed Assets : (contd.)
3,129.95
1,401.61
77.57
167.86
0.25
77.32
167.86
7.17
(16.74)
3.93
1.48
14.74
3.70
142.02
88.88
Other
Adjustments
during the
year
4,620.87
1,239.48
132.70
1,150.92
16.16
116.54
1,150.92
12.64
4.51
14.82
0.62
1.50
70.24
4.60
1,051.72
8.73
98.08
Deductions
and
Adjustments
during the
year
37,663.57
36,299.96
2,412.39
1,975.76
0.63
0.29
2,412.10
1,975.13
65.01
44.26
29.94
37.53
2.23
3.73
4.11
4.11
417.17
335.44
1,351.87
1,882.27
104.80
104.76
Cost/
Professional
valuation
as at 31st
March, 2014
17,726.77
15,720.19
1,252.67
1,629.81
0.19
6.29
1,246.38
1,629.62
16.40
26.62
25.84
22.58
0.62
1.84
1.44
3.95
3.78
270.13
206.27
1,253.47
850.13
57.99
134.94
Depreciation/
Amortisation
upto 31st
March, 2013
2,169.89
2,094.15
443.01
368.67
0.07
4.30
438.71
368.60
10.04
5.76
2.89
2.50
0.16
0.40
0.11
0.17
66.82
65.72
267.57
343.04
21.01
21.12
Depreciation/
Amortisation
for 2013-2014
1,822.71
87.57
65.87
1,005.38
10.40
55.47
1,005.38
4.57
15.98
10.82
(0.76)
0.62
53.97
1.86
936.02
(60.30)
98.07
Deductions and
Adjustments of
Depreciation/
Amortisation
18,073.95
17,726.77
1,629.81
993.10
0.26
0.19
1,629.62
992.84
21.87
16.40
17.91
25.84
2.00
1.84
4.06
3.95
282.98
270.13
585.02
1,253.47
79.00
57.99
19,589.62
18,573.19
782.58
982.66
0.37
0.10
782.48
982.29
43.14
27.86
12.03
11.69
0.23
1.89
0.05
0.16
134.19
65.31
766.85
628.80
25.80
46.77
Net Balance
Depreciation/
before
Amortisation
upto 31st Impairment as
at 31st
March, 2014
March, 2014
2,552.65
2,263.19
3.56
3.98
3.56
3.98
3.85
3.38
0.13
0.18
Impairment
as at 31st
March, 2014
17,036.97
16,310.00
779.02
978.68
0.37
0.10
778.92
978.31
39.29
24.48
11.90
11.51
0.23
1.89
0.05
0.16
134.19
65.31
766.85
628.80
25.80
46.77
Net Balance
after
Impairment
as at 31st
March, 2014
Rupees crores
179
14. Fixed Assets : (contd.)

The above includes following assets given on operating lease :
Rupees crores
As at 31st March, 2014
2014
Gross Block
Accumlated
Depreciation
Net Block
Depreciation
charge for
the year
Building Freehold............................................................................
110.53
108.65
9.75
7.36
100.78
101.29
2.39
2.12
Plant and Equipment Freehold......................................................
11.86
11.08
2.27
2.06
9.59
9.02
0.21
0.88
Furniture and Fixtures.......................................................................
13.91
13.91
7.33
5.87
6.58
8.04
1.46
1.47
Total.....................................................................................................
136.30
133.64
19.35
15.29
116.95
118.35
4.06
4.47
Particulars
Current year figures are in Bold.
(a) Other Adjustments during the year includes Translation difference of opening balance, Difference in exchange and Interest capitalised.

(b) Depreciation charge for the year excludes :

(i) An amount of Rs. 0.32 crores (2013 : Rs. 0.35 crores), representing depreciation on the increase due to revaluation of Land and
Buildings transferred from Revaluation Reserve.

(c) The Revaluation Reserve is adjusted for an amount of Rs. Nil (2013 : Rs. 0.01 crores) in respect of revalued Land and Building sold/
demolished during the year.
(d) Impairment charge for the year to Statement of Profit & Loss is given below :
Rupees crores
Charge for the year
Particulars
Building Leasehold.............................................................................................................................................
0.86
Plant and Equipment Freehold.........................................................................................................................
3.74
Office Equipment..................................................................................................................................................
0.14
Furniture and Fixtures..........................................................................................................................................
0.44
Trademarks.............................................................................................................................................................
0.17
Computer Software...............................................................................................................................................
Total........................................................................................................................................................................
0.03
5.38
(e) Addition to tangible and intangible assets and depreciation/amortisation for the year include the following assets and accumulated
depreciation/amortisation taken over on acquisition of subsidiaries :
Rupees crores
180
Cost
Accumulated
Depreciation/
Amortisation
Cost
Accumulated
Depreciation/
Amortisation
Land Freehold..................................................................
34.94
Buildings Freehold...........................................................
48.02
10.10
Plant and Equipment.........................................................
3.02
1.48
Furniture and Fixtures.......................................................
2.59
1.11
Vehicles................................................................................
0.22
0.14
Office Equipment...............................................................
0.81
0.65
Computer Software............................................................
0.08
0.07
Other Intangible.................................................................
3.41
0.39
Total.....................................................................................
93.09
13.94
15. (A) Non Current Investments (At Cost, unless otherwise specified)
Rupees crores
2014
Long Term
2013
Long Term
2.10
9.38
1.77
12.03
11.48
13.80
3,645.28
2,747.44
3,656.76
2,761.24
122.58
94.42
122.58
94.42
Quoted :
(i) In Other Companies.......................................................................................................................
2.36
2.39
2.36
2.39
Investment in Equity Instruments........................................................................................................
3,781.70
2,858.05
Investment in Preference Shares : (Trade and fully paid-up)

Unquoted :
(i) In Associate Companies.................................................................................................................
(ii) In Other Companies.......................................................................................................................
5.53
11.82
5.64
15.17
17.35
20.81
Investments in Equity Instruments : (Trade and fully paid-up)

Unquoted :
(ii) In Other Companies.......................................................................................................................
Quoted :
Investments in Equity Instruments : (Non-trade and fully paid-up)
Unquoted :
Investment in Preference Shares : (Non-trade and fully paid-up)

Unquoted :
35.23
33.61
Investment in Preference Shares..........................................................................................................
52.58
54.42
Investment in Government/Trust Securities

Unquoted :
(i) Government Securities..................................................................................................................
(ii) Trust Securities...............................................................................................................................
1,567.15
0.01
1,562.93
1,567.15
1,562.94
Quoted :
(i) Government Securities
Investment in Government/Trust Securities.......................................................................................
378.96
241.68
1,946.11
1,804.62
160.09
Investment in Debentures/Bonds : (Trade and fully paid-up)

Unquoted :
(i) In Joint Venture Companies.........................................................................................................
Other Investments :
Unquoted :
3.19
2.81
5,943.67
0.06
4,719.90
0.06
Less : Provision for diminution in value of Long Term Investments.................................................
5,943.73
91.36
4,719.96
93.76
5,852.37
4,626.20
4,026.60
12,685.25
1,917.13
2,991.51
6,844.81
1,728.45
Other Disclosures :
(i) Aggregate amount of quoted Investments (Gross)...................................................................

Market Value of quoted Investments..........................................................................................
(ii) Aggregate amount of unquoted Investments (Gross)..............................................................
181
15. (B) Current Investments (At Cost, unless otherwise specified)

Rupees crores
Investment in Government Securities (Quoted) :..............................................................................

Investment in Debentures/Bonds (Quoted) :.....................................................................................
Other Investments (Unquoted) :
(i) Units of Mutual Funds...................................................................................................................
(ii) Certificate of Deposits...................................................................................................................
Other Investments (Quoted) :
(i) Units................................................................................................................................................
2014
Current
2013
Current
12.24
57.37
1.91
78.32
1,342.89
811.14
910.28
813.79
10.00
10.00
2,233.64
0.01
1,814.30
0.01
Less : Aggregate excess of cost over fair value, by category............................................................
2,233.65
3.67
1,814.31
0.10
2,229.98
1,814.21
79.61
76.17
2,154.04
90.23
90.13
1,724.08
Other Disclosures :
(i) Aggregate amount of quoted Investments (Gross)...................................................................

Market Value of quoted Investments..........................................................................................
(ii) Aggregate amount of unquoted Investments (Gross)..............................................................
16. Long Term Loans and Advances : (contd.)
Rupees crores
2014
2013
(A) Capital Advances :

Doubtful........................................................................................................

Less : Provision for doubtful capital advances ........................................
(B) Security Deposits :

Doubtful........................................................................................................

475.24
1.69
587.28
2.92
476.93
1.69
584.36
475.24
304.38
1.70
Less : Provision for doubtful security deposits.........................................
(C) Loans and Advances to Related Parties :

Doubtful........................................................................................................

584.36
2.92
264.80
1.22
306.08
1.70
266.02
1.22
304.38
264.80
7.22
10.00
Less : Provision for doubtful Loans and Advances to Related Parties.....
7.00
10.00
17.22
10.00
17.00
10.00
7.22
7.00
(D) Loans and Advances against Assets :

Secured, considered good...........................................................................
Doubtful........................................................................................................

182
Less : Provision for Loans and Advances against Assets.........................
16,335.53
376.29
13,333.01
162.15
16,711.82
179.56
13,495.16
91.72
16,532.26
13,403.44
16. Long Term Loans and Advances : (contd.)
Rupees crores
2014
2013
(E) Other Loans and Advances :


Doubtful........................................................................................................
Less : Provision for doubtful Other Loans and Advances.......................
4.45
3,012.21
8.35
Group Share of Joint Ventures...................................................................
6.30
2,227.21
10.30
3,025.01
2,243.81
8.35
10.30
3,016.66
2,233.51
20,444.88
919.53
16,383.99
588.60
21,364.41
16,972.59
Other Loans and Advances includes VAT receivable, payment towards income-tax & surtax, other recoverable expenses and advances to
employees.
17. Other Non-Current Assets :
Rupees crores
2014
2013
(A) Long Term Trade Receivables

Unsecured, considered good.........................................................................................................

Doubtful...........................................................................................................................................
384.42
0.42
329.63
0.44
384.84
0.42
330.07
0.44
384.42
329.63
(B) Others
105.47
52.66
489.89
15.48
382.29
15.37
505.37
397.66
Less : Provision for doubtful Long Term Trade Receivables.......................................................
18. Inventories :
Rupees crores
2014
2013
(i)
Raw Materials and Bought-out Components [includes in transit Rs. 599.76 crores
(2013 : Rs. 648.70 crores)]..............................................................................................................
(ii) Contracts and Work-in-Progress...................................................................................................
(iii) Work-in-Progress Property Development Activity and Long term Contracts.......................
(iv) Manufactured Components...........................................................................................................
(v) Finished Products produced..........................................................................................................
(vi) Stock-in-Trade [includes in transit Rs. 54.33 crores (2013 : Rs. 121.15 crores)]........................
(vii) Stores and spares............................................................................................................................
(viii) Loose Tools......................................................................................................................................
(ix) Food, Beverages, Smokes and Operating Supplies.....................................................................
2,988.12
544.21
1,572.34
144.43
2,256.48
572.93
112.76
48.77
10.17
3,152.11
684.81
1,558.81
156.90
2,066.15
602.67
122.54
56.36
7.17
Group Share of Joint Ventures .............................................................................................................
8,250.21
103.33
8,407.52
9.38
8,353.54
8,416.90
183
19. Trade Receivables :

Rupees crores
2014
2013
3.46
175.46
0.53
122.60
178.92
123.13
477.55
5,043.89
532.64
4,499.96
5,521.44
5,032.60
132.86
4.49
119.86
10.73
137.35
130.59
137.35
130.59
5,700.36
5,155.73
25.06
21.24
5,725.42
5,176.97
(A) Secured, considered good

Outstanding for a period exceeding six months from the date they are due for payment
Others...............................................................................................................................................
(B) Unsecured, considered good

Others...............................................................................................................................................
(C) Doubtful

Others...............................................................................................................................................
Less : Provision for doubtful Trade Receivables..........................................................................
20. Cash and Bank Balances :

Rupees crores
2014
2013
(A) Cash and Cash Equivalents :


(i) On Current Accounts...........................................................................
(ii) Fixed Deposits with original maturity less than 3 months.............
Cheques, drafts on hand............................................................................

Cash on hand...............................................................................................
1,396.10
2,634.24
1,535.26
1,804.42
4,030.34
545.34
32.50
24.66
3,339.68
445.67
25.88
11.61
4,632.84
3,822.84
33.21
38.81
(B) Other Bank Balances :
184
Earmarked balances with banks.................................................................

(i) On Margin Accounts...........................................................................
(ii) Fixed Deposits with original maturity greater than 3 months*....
459.49
1,386.29
221.63
836.34
1,845.78
10.96
1,057.97
16.92
1,889.95
1,113.70
6,522.79
4,936.54
* Includes deposits of Rs. 260.84 crores (2013 : Rs. 122.69 crores) with maturity greater than 12 months from Balance Sheet date.
21. Short Term Loans and Advances :

Rupees crores
2014
2013
(A) Loans and Advances to Related Parties :

65.41
8.56
Doubtful........................................................................................................
5.84
6.42
71.25
14.98
5.84
6.42
65.41
8.56
11,636.67
9,566.95
Doubtful........................................................................................................
877.26
477.19
12,513.93
10,044.14
449.46
287.69
12,064.47
9,756.45
Less : Provision for doubtful Loans and Advances to Related Parties....
(B) Loans and Advances against Assets :

Less : Provision for doubtful Loans and Advances against Assets.........
(C) Other Loans and Advances :

68.82
36.31
3,200.73
3,035.27
Doubtful........................................................................................................
48.31
47.27
Less : Provision for doubtful other Loans and Advances........................
3,317.86
3,118.85
48.31
47.27
3,269.55
3,071.58
15,399.43
12,836.59
442.71
169.97
15,842.14
13,006.56
Other Loans and Advances includes balances with government authorities, MAT credit entitlement, advance to suppliers, other recoverable
expenses, deposits and prepaid expenses.
22. Other Current Assets :
Rupees crores
2014
2013
(i) Government Grant Receivable......................................................................................................
254.90
366.98
(ii) Others...............................................................................................................................................
671.01
485.27
925.91
852.25
Less : Provision for doubtful other current assets..............................................................................
26.16
23.56
899.75
20.81
828.69
16.57
920.56
845.26
185
23. Revenue from Operations :

Rupees crores
2014
2013
Sale of Products....................................................................................................
Sale of Services.....................................................................................................
Group Share of Joint Ventures ..........................................................................
68,940.89
2,134.37
85.41
64,638.16
2,004.28
1,279.49
Gross Revenue from Sale of Products and Services.........................................

Other Operating Revenues :
(i) Income from long term contracts..............................................................
(ii) Lease and rental income.............................................................................
(iii) Scrap Sales....................................................................................................
(iv) Interest income of financial enterprises consolidated.............................
(v) Dividend Income of Investment enterprises consolidated......................
(vi) Government Grant and Incentives.............................................................
(vii) Others............................................................................................................
71,160.67
67,921.93
548.45
110.34
395.05
5,114.20
0.11
433.57
408.10
60.14
Less: Excise Duty attributable to products sold................................................
492.03
191.32
477.54
3,976.01
0.52
365.88
537.25
9.40
7,069.96
6,049.95
78,230.63
4,229.70
73,971.88
5,278.39
74,000.93
68,693.49
24. Other Income :

Rupees crores
2014
(i) Interest Income :

(a) Interest Current Investments..........................................................

(b) Interest others..................................................................................
5.54
303.43
2013
5.95
139.27
Dividend on long term Investments..........................................................

Dividend on current Investments...............................................................
Profit on sale of current Investments (Net)..............................................
Profit on sale of tangible assets (Net)......................................................
Other non operating Income.....................................................................
308.97
0.21
89.44
10.56
93.74
145.22
0.15
79.31
76.69
1.23
83.25
Group Share of Joint Ventures...........................................................................
502.92
2.17
385.85
3.09
505.09
388.94
(ii)
(iii)
(iv)
(v)
(vi)
25. Cost of Materials Consumed :

Rupees crores
186
2014
2013
Opening Stock.........................................................................................................................................
Add : Purchases ......................................................................................................................................
3,152.11
42,920.09
2,713.83
39,693.94
Add : Stock taken over on Acquisition/(Disposal)...............................................................................
46,072.20
(104.10)
42,407.77
Less : Closing Stock..................................................................................................................................
45,968.10
2,988.12
42,407.77
3,152.11
Foreign currency translation..................................................................................................................

42,979.98
202.15
70.42
39,255.66
91.47
62.37
43,252.55
39,409.50
26. Changes in Inventories of Finished Goods, Work-in-Progress, Stock-in-Trade and Manufactured Components :
Rupees crores
2014
2013
2,066.15
684.81
602.67
156.90
1,956.85
750.23
470.98
112.30
3,510.53
3,290.36
(92.33)
(206.91)
(1.49)
0.07
(300.73)
0.07
2,256.48
544.21
572.93
144.43
2,066.15
684.81
602.67
156.90
3,518.05
3,510.53
Excise Duty paid on stocks.....................................................................................................................

Foreign currency translation..................................................................................................................
(308.25)
(46.81)
118.00
(1.91)
(220.10)
48.58
43.78
(0.26)
Increase in Stock......................................................................................................................................
(238.97)
(128.00)
Opening Stock :
(i) Finished Products Produced...........................................................................................................
(iii) Stock-in-Trade..................................................................................................................................
Add : Stock on Acquisition/(Disposal):
Less: Closing Stock
27. Employee Benefits Expense :

Rupees crores
(i) Salaries, Wages, Bonus, etc...........................................................................................................
(ii) Contribution to Provident and other funds................................................................................
(iii) Employee Stock Compensation Expense......................................................................................
(iv) Welfare.............................................................................................................................................
2014
2013
5,679.08
510.86
76.66
604.82
4,986.02
488.30
88.26
622.57
6,871.42
6,185.15
14.52
633.92
6,885.94
6,819.07
28. Finance Costs :

Rupees crores
2014
2013
(i) Interest Expense.............................................................................................................................

(ii) Other Borrowing Costs..................................................................................................................
2,812.00
120.74
2,155.86
111.35
Group Share of Joint Ventures ............................................................................................................
2,932.74
21.19
2,267.21
29.79
2,953.93
2,297.00
187
29. Other Expenses :

Rupees crores
2014
2013
Stores consumed.......................................................................................
394.77
370.27
(ii)
Tools consumed.........................................................................................
67.45
96.78
(iii)
Power and Fuel.........................................................................................
923.38
936.88
(iv)
Rent including lease rentals.....................................................................
362.05
321.16
(v)
Rates and Taxes.........................................................................................
156.76
126.83
(vi) Insurance....................................................................................................
88.94
77.48
(i)
(vii) Repairs and Maintenance :

(a) Buildings............................................................................................
76.40
62.26
(b) Machinery..........................................................................................
331.35
336.49
(c) Others................................................................................................
181.25
176.01
589.00
574.76
(viii) Advertisement...........................................................................................
507.56
439.80
(ix)
Commission on sales/contracts (Net)......................................................
844.03
602.79
(x)
Freight outward........................................................................................
1,906.34
1,742.66
(xi)
Sales Promotion Expenses........................................................................
879.89
725.66
(xii) Dealer and other sales incentives...........................................................
877.98
655.32
(xiii) Travelling and Conveyance Expenses......................................................
376.87
323.75
(xiv) Cost of Projects, Property etc..................................................................
470.39
401.88
(xv) Subcontracting, Hire and Service Charges.............................................
1,064.47
935.92
(xvi) Provision for doubtful trade and other receivables, loans and advances....
294.74
103.98
(xvii) Donations and contributions...................................................................
38.56
33.89
3.57
(1.84)
2,459.63
2,299.58
12,306.38
10,767.55
35.53
364.89
12,341.91
11,132.44
(xviii)
Excess of carrying cost over fair value of current investments
(Net)...........................................................................................................
Excess of carrying cost over fair value of current investments,
(xix)
reversed (Net)............................................................................................
(xx) Miscellaneous expenses............................................................................
30. (a) During the year, Mahindra & Mahindra Financial Services Ltd. (MMFSL) has without recourse securitised on at par basis vide PTC
route loan receivables of 47,122 contracts (2013 : 54,374 contracts) amounting to Rs. 1,262.93 crores (2013 : Rs. 1,433.61 crores) for a
consideration of Rs. 1,262.93 crores (2013 : Rs. 1,433.61 crores) and de-recognised the assets from the books.

(b)
During the year, MMFSL has without recourse assigned loan receivables of 6,490 contracts (2013 : Nil contracts) amounting to
Rs. 198.51 crores (2013 : Rs. Nil) for a consideration of Rs. 155.54 crores (2013 : Rs. Nil) towards 90% of receivables assigned and
de-recognised the assets from the books. Out of the total receivables, an amount of Rs. 19.85 crores equivalent to 10% of the receivables
have been recognized as Retained interest in assignment transactions representing Minimum Retention Requirement (MRR) as required
under revised guidelines on securitization transactions vide RBI Circular dated August 21, 2012.

The amount of profit in cash of Rs. 3.15 crores on this assignment transaction has been held under an accounting head
Cash profit on loan transfers under assignment transactions pending recognition and the same is amortized in line with above
referred guidelines.

188
31. (a) Provision for warranty relates to warranty provision made in respect of sale of certain products, the estimated costs of which are
accrued at the time of sale.

(b)
Provision on standard assets relates to those created under regulatory compliances of certain financial enterprises consolidated.
The movement in above provisions is as follows :
Rupees crores
Warranty
Balance as at 1 April............................................................
st
Standard Assets
2014
2013
2014
2013
981.97
874.15
98.59
45.61
582.05
548.03
22.84
52.98
1,564.02
1,422.18
121.43
98.59
486.28
486.87
Add :
Provision made during the year..........................................
Less :
Utilisation during the year...................................................
9.89
1,067.85
935.31
121.43
98.59
Adjustments due to Exchange Difference..........................
81.03
46.66
Balance as at 31 March.......................................................
1,148.88
981.97
121.43
98.59
555.29
478.48
53.71
43.74
Classified as Non-Current.....................................................
593.59
503.49
67.72
54.85
Total.......................................................................................
1,148.88
981.97
121.43
98.59
Subsidiaries sold/disposed off during the year..................

Add :
st
Out of the above,

Classified as Current..............................................................
32. Employee Defined Benefits :

General description of defined benefit plans :
Gratuity
Some of the group entities operate a gratuity plan covering qualifying employees. The benefit payable is the greater of the amount calculated
as per the Payment of Gratuity Act or the Company scheme applicable to the employee. The benefit vests upon completion of five years of
continuous service and once vested it is payable to employees on retirement or on termination of employment. In case of death while in
service, the gratuity is payable irrespective of vesting. Some entities makes annual contribution to the group gratuity scheme administered
by the Life Insurance Corporation of India through its Gratuity Trust Fund.
Ssangyong Motor Company provides certain severance benefit to employees on leaving service. The benefit is payable after one year of
service and is one months salary for every completed year of service. Additionally based on number of years of service an additional benefit
is provided on normal retirement.

Post Retirement medical
Few entities provide post retirement medical cover to select grade of employees to cover the retiring employee and their spouse upto a
specified age through mediclaim policy on which the premiums are paid by the Company. The eligibility of the employee for the benefit as
well as the amount of medical cover purchased is determined by the grade of the employee at the time of retirement.

Post Retirement housing allowance
M&M operates a post retirement benefit scheme for a certain grade of employees in which a monthly allowance determined on the basis of
the last drawn basic salary at the time of retirement, is paid to the retiring employee in lieu of housing.
189
Defined Benefit Plans - as per Actuarial valuation on 31st March, 2014

Rupees crores
Funded Plan
Unfunded Plan
Gratuity
A.
2014
2013
2014
2013
50.70
44.49
183.38
130.12
1.04
0.86
2.08
1.74
30.09
31.04
1.31
1.20
2.64
2.18
44.38
41.53
3. Expected return on Plan Assets......................
(31.10)
(29.40)
4. Actuarial (Gains)/Losses...................................
21.18
11.82
5. Past Service Cost...............................................
0.13
0.02
12.86
6. Settlement Cost/Curtailment Cost.................
(1.90)
0.08
(53.55)
7. Payments on account of employees

transferred........................................................
(0.07)
8. Effect of the limit in Para 59(b) of the

revised AS 15.....................................................
0.01
(0.03)
9. Total expense recognised in Employees

Benefits Expense.............................................
83.33
68.51
210.48
245.59
1.40
2.02
1.68
7.52
1. Present Value of Defined Benefit

Obligation as at 31st March.............................
636.96
569.32
1,162.75
864.49
16.37
15.53
32.13
31.46
(2.99)
125.12
(0.95)
(0.04)
(3.04)
3.60
Net Asset/(Liability) recognised in the Balance

Sheet as at 31st March
2. Fair value of Plan Assets as at 31 March.....
448.30
425.19
3. Amount not recognised as an asset..............
0.04
0.01
4. Trust Fund Receivable......................................
8.21
7.44
5. Net Asset/(Liability) as at 31 March.............
(188.70)
(144.14)
(1,154.54)
(857.05)
(16.37)
(15.53)
(32.13)
(31.46)
6. Current Portion of the above.........................
(37.80)
(24.59)
(2.15)
(1.73)
(0.64)
(0.75)
(1.01)
(1.01)
7. Non Current Portion of the above.................
(150.90)
(119.55)
(1,152.39)
(855.32)
(15.73)
(14.78)
(31.12)
(30.45)
569.32
500.99
864.49
1,024.92
15.53
13.87
31.46
24.95
119.53
77.42
0.38
0.75
(51.71)
st
Change in the obligations during the year

ended 31st March
1. Present Value of Defined Benefit
Obligation at the beginning of the year......
2. Adjustment to the opening balance/
exchange rate variation...................................
3. Obligations arising on account of
acquisitions/Change in group interest
during the year.................................................
4. Consequent to sale/disposal of the
subsidiaries........................................................
(0.23)
(12.73)
5. Current Service Cost.........................................
50.70
44.49
183.38
130.12
1.04
0.86
2.08
1.74
6. Interest Cost......................................................
44.38
41.53
30.09
31.04
1.31
1.20
2.64
2.18
7. Actuarial (Gains)/Losses...................................
26.83
18.70
(2.99)
125.12
(0.95)
(0.01)
(3.04)
3.60
8. Benefits paid.....................................................
(41.44)
(36.79)
(32.50)
(485.28)
(0.56)
(0.39)
(1.01)
(1.01)
9. Past Service Cost...............................................
0.13
0.02
12.86
636.96
569.32
1,162.75
864.49
16.37
15.53
32.13
31.46
10. Present Value of Defined Benefit Obligation

at the end of the year.....................................
190
Post Retirement
Housing Allowance
2014
2013
2. Interest Cost......................................................
st
C.
Post Retirement
Medical Benefits
2014
2013
Expense recognised in the Statement of Profit

and Loss for the year ended 31st March
1. Current Service Cost.........................................
B.
Gratuity
Rupees crores
Funded Plan
Unfunded Plan
Gratuity
D.
E.
Post Retirement
Medical Benefits
2014
2013
Post Retirement
Housing Allowance
2014
2013
2014
2013
2014
2013
1. Fair value of Plan Assets at the beginning

of the year........................................................
425.19
384.51
2. Adjustment to the opening balance/

exchange rate variation...................................
1.09
3. Fair value of Plan Assets arising on account

of acquisitions during the year.......................
Change in the fair value of Plan Assets during

the year ended 31st March
4. Fair value of Plan Assets transferred on

disposal/sale of subsidiaries............................
(7.38)
5. Expected return on Plan Assets......................
31.10
29.40
6. Actuarial Gains/(Losses)...................................
5.65
6.88
7. Contributions by employer.............................
34.10
41.19
0.56
0.39
8. Actual Benefits paid........................................
(41.44)
(36.79)
(0.56)
(0.39)
1.01
(1.01)
1.01
(1.01)
9. Fair value of Plan Assets at the end of the

year....................................................................
448.30
425.19
10. Actual return on Plan Assets..........................
33.98
30.77
100.00%
100.00%
8.00% 9.35%
7.50% 9.50%
7.90% 8.50%
3.66% 9.30%
3.02% 8.30%
7.95% 8.00%
9.05%
8.00%
8.95% 9.05%
3. Attrition rate.....................................................
1.00% 25.00%
1.00% 25.00%
1.00% 25.00%
1.00% 7.00%
1.00% 10.00%
7.00%
4. Medical Premium inflation..............................
7.00%
7.00%
Major category of Plan Assets as a percentage

of total plan
Insurer Managed Funds*..........................................
F.
Gratuity
Actuarial Assumptions
1. Discount Rate....................................................
2. Expected rate of return on Plan Assets.........
7.50% 12.30%
* In the absence of detailed information regarding plan assets which is funded with Insurance Companies, the composition of each major category of plan
assets, the percentage or amount for each category to the fair value of plan assets has not been disclosed.
Rupees crores
G.
One percentage point increase

One percentage point decrease

Effect on the aggregate service and interest cost of Post

Employment Medical benefits.......................................................
0.39
(0.32)
Effect on the accumulated Post Employment Medical

benefit obligations...........................................................................
2.19
(1.84)
Effect on the aggregate service and interest cost of Post

Employment Medical benefits.......................................................
0.37
(0.31)
Effect on the accumulated Post Employment Medical

benefit obligations...........................................................................
2.10
(1.84)
Effect of one percentage point change in the assumed

medical inflation rate
Current Year
Previous Year
191
Rupees crores
H.
Experience Adjustments
Period Ended
2013
2012
2014
2011
2010
500.99
435.87
378.12
Gratuity (Funded)
636.96
Defined Benefit Obligation.......................................................................
569.32
Fair value of plan assets............................................................................
448.30
425.19
384.51
338.13
305.04
Surplus/(Deficit)..........................................................................................
(188.70)
(144.14)
(116.48)
(97.74)
(73.08)
Experience adjustment on Plan Liabilities [(Gain)/Loss]........................
74.10
7.86
20.90
0.41
13.40
Experience adjustment on Plan Assets [Gain/(Loss)].............................
6.50
10.89
8.97
(0.41)
4.92
1,154.54
857.05
1,024.92
781.33
46.30
(857.05)
(1,024.92)
(781.33)
(46.30)
Gratuity (Unfunded)
Surplus/(Deficit)..........................................................................................
(1,154.54)
Experience adjustment on Plan Liabilities [(Gain)/Loss]........................
(1.20)
16.37
15.53
13.87
14.36
9.88
Surplus/(Deficit)..........................................................................................
(16.37)
(15.53)
(13.87)
(14.36)
(9.88)
Experience adjustments on Plan Liabilities [(Gain)/Loss].......................
1.07
(0.67)
(0.16)
(0.36)
5.21
21.38
4.10
(2.36)
0.26
Post Retirement Medical Benefits (Unfunded)
Post Retirement Housing Allowance (Unfunded)

32.13
31.46
24.95
16.18
10.99
Surplus/(Deficit)..........................................................................................
(32.13)
(31.46)
(24.95)
(16.18)
(10.99)
Experience adjustments on Plan Liabilities [(Gain)/Loss].......................
0.75
2.55
6.28
(1.41)
0.15
Unfunded Pension Liability in respect of certain foreign subsidiaries is as below :

Rupees crores
2014
A.
B.
C.
192
2013
Expense recognised in the Statement of Profit and Loss for the year ended 31 March
st
1.
Current Service Cost....................................................................................................................
1.18
2.
Interest Cost.................................................................................................................................
6.30
3.
Actuarial (Gains)/Losses..............................................................................................................
29.03
4.
Past Service Cost..........................................................................................................................
0.03
5.
Total expense recognised in Employee Benefits Expense.......................................................
36.54
Net asset/(liability) recognised in the Balance Sheet as at 31st March

1.
Present Value of Defined Benefit Obligation as at 31st March..............................................
154.53
2.
Net Asset/(Liability) as at 31 March.........................................................................................
(154.53)
st
Change in the obligations during the year ended 31st March

1.
Present Value of Defined Benefit obligation at the beginning of the year.........................
154.53
124.80
2.
Adjustment on account of exchange rate variations...............................................................
2.29
3.
Consequent to sale/Disposal of Subsidiaries............................................................................
4.
Current Service Cost....................................................................................................................
1.18
5.
Interest Cost.................................................................................................................................
6.30
(154.53)
6.
Actuarial (Gains)/Losses..............................................................................................................
29.03
7.
Benefits paid................................................................................................................................
(9.10)
8.
Past Service Cost..........................................................................................................................
0.03
9.
Present Value of Defined Benefit obligation at the end of the year....................................
154.53
33. Contingent Liability and Commitments :

(A) Contingent Liability
(i) Claims against the Company not acknowledged as debts comprise :
(a) Excise Duty, Sales Tax and Service Tax claims disputed by the Company relating to issues of applicability and classification
aggregating Rs. 1,868.92 crores before tax (2013 : Rs. 1,644.70 crores before tax).
(b) Other matters (excluding claims where amounts are not ascertainable) : Rs. 522.97 crores before tax (2013 : Rs. 576.15 crores
before tax).
(c) Claims on capital account : Rs. Nil (2013 : Rs. 5.67 crores).
(d) Group Share of Joint Ventures : Rs. 1.02 crores before tax (2013 : Rs. 5.31 crores before tax).
(ii) Taxation matters :
(a)
Demands not acknowledged as debts and not provided for, relating to issues of deductibility and taxability in respect
of which the matters are in appeal and exclusive of the effect of similar matters in respect of assessments remaining
to be completed :

Income Tax matters : Rs. 598.36 crores (2013 : Rs. 386.62 crores).

Group Share of Joint Ventures : Rs. 4.72 crores (2013 : Rs. 0.76 crores).
(b) Items which have succeeded in appeal, but the Income Tax Department is pursuing/likely to pursue in appeal/reference and
exclusive of the effect of similar matters in respect of assessments remaining to be completed :

Income Tax matters : Rs. 177.23 crores (2013 : Rs. 120.36 crores).

Surtax matters : Rs. 0.40 crores (2013 : Rs. 0.13 crores).

Group Share of Joint Ventures : Rs. 0.55 crores (2013 : Nil).
(iii) Bills discounted not matured Rs. 16.52 crores (2013 : Rs. 96.39 crores).
(iv)
Corporate undertaking on assignment/securitisation by Mahindra & Mahindra Financial Services Limited Rs. 604.13 crores
(2013 : Rs. 744.94 crores).
(v) Work-in-Progress - Property Development Activity and Long Term Contract include Rs. 71.46 crores (2013 : Rs. 71.46 crores) on
account of a project, where commencement of construction has been delayed on account of a dispute between the land-owner
and Mahindra Lifespace Developers Limited (MLDL), presently referred to arbitration. Post year end, the parties have entered into
mutually agreed consent terms and the arbitration award has been issued in accordance with the consent terms, as a result of which
this amounts are expected to be recovered either by sale or joint development of the property.
(vi) The Customs, Excise and Service Tax Appellate Tribunal (CESTAT) by its order dated 7th December, 2009 has rejected the Companys
appeal against the order dated 30 th March, 2005 passed by the Commissioner of Central Excise (Adjudication), Navi Mumbai
confirming the demand made on the Company for payment of differential excise duty (including penalty) of Rs. 304.10 crores in
connection with the classification of Companys Commander range of vehicles, during the years 1991 to 1996. Whilst the Company
had classified the Commander range of vehicles as 10-seater attracting a lower rate of excise duty, the Commissioner of Central
Excise (Adjudication), Navi Mumbai, has held that these vehicles could not be classified as 10-seater as they did not fulfil the
requirement of 10-seater vehicles, as provided under the Motor Vehicles Act, 1988 (MVA) and Maharashtra Motor Vehicles Rules,
1989 (MMVR) and as such attracted a higher rate of excise duty.

In earlier collateral proceedings on this issue, the CESTAT had by an order dated 19th July, 2005 settled the controversy
in the Companys favour. The CESTAT had accepted the Companys submission that MVA and MMVR could not be referred
to for determining the classification for the purpose of levy of excise duty and rejected the Departments appeal against the
order of the Collector, Central Excise classifying the Commander range of vehicles as 10-seater. While the Departments appeal
against the CESTAT order dated 19th July, 2005 has been admitted, the Supreme Court of India has not stayed the operation
of this order.
The Company has filed an appeal in the Supreme Court against the aforesaid order dated 7th December, 2009 inter alia, on the
grounds that the MVA and MMVR cannot be referred to for the purpose of determining the excise classification, as has been
repeatedly held by various judicial fora, including the Supreme Court and particularly by CESTAT vide its order dated 19 th July, 2005
in the Companys own case referred to above.
Without prejudice to the grounds raised in this appeal, the Company has paid an amount of Rs. 40.00 crores in January, 2010. The
Supreme Court has admitted the Companys appeal and has stayed the recovery of the balance amount till further orders.
193
33. Contingent Liability and Commitments : (contd.)

In another case relating to Armada range of vehicles manufactured during the years 1992 to 1996, by the Company at its
Nashik facility, the Commissioner of Central Excise, Nashik passed an order dated 20 th March, 2006 confirming a demand of
Rs. 24.75 crores, on the same grounds as adopted for Commander range of vehicles. The CESTAT has given an unconditional stay
against this order. The final hearing in this matter has been adjourned till the disposal of the appeal by the Supreme Court in the
matter relating to Commander range of vehicles.
The Company strongly believes, based on legal advice it has received, that the CESTAT order dated 7th December, 2009 which
is under appeal in the Supreme Court is not sustainable in law. As such, the Company does not expect any liability on this
account. However, in view of the CESTAT order, the Company has reflected the above amount aggregating Rs. 328.85 crores
(2013 : Rs. 328.85 crores) and the interest of Rs. 305.34 crores (2013 : Rs. 269.24 crores) accrued on the same upto 31st March, 2014,
under Note (i)(a) above.

(vii) In respect (i) and (ii) of the above, it is not praticable for the Company to estimate the closure of these issues and the consequential
timings of cash flows, if any.
(B) Commitments
The estimated amount of contracts remaining to be executed on capital account and not provided for as at 31st March, 2014 is
Rs. 1,808.67 crores (2013 : Rs. 1,240.71 crores).

34. Research and Development Expenditure debited to the Statement of Profit and Loss, including certain expenditure based on allocations made
aggregate Rs. 674.89 crores (2013 : Rs. 667.05 crores).

35. The net difference in foreign exchange loss debited to the Statement of Profit and Loss is Rs. 1.34 crores (2013 : gain of Rs. 37.62 crores).
36. Matters pertaining to erstwhile Satyam Computers Services Limited (SCSL) :
In the financial statements of Tech Mahindra Limited (TML) for the year ended March 31, 2014, TML has, inter-alia, referred to certain letters,
received by the erstwhile SCSL in 2009, from thirty seven companies requesting confirmation by way of acknowledgement for receipt of
certain alleged amounts referred to as alleged advances. These letters were followed by legal notices from these companies in August,
2009, claiming repayment of Rs. 1,230.40 crores allegedly given as temporary advances. The legal notices also claim damages/compensation
@18% per annum from date of advance till date of repayment. The erstwhile Satyam has not acknowledged any liability to any of the thirty
seven companies and has replied to the legal notices stating that the claims are legally untenable.
Based on legal opinion, the erstwhile SCSL managements view, which is also TMLs managements view, the claim regarding repayment
of alleged advances (including interest thereon) of the 37 Companies are not legally tenable. Accordingly, in the opinion of the TMLs
Management, even in the unlikely event that the principal amount of the claims of the 37 companies are held to be tenable and TML is
required to repay these amounts, such an eventuality will not have an adverse bearing on either TMLs profits or its reserves in that period,
since TML has been legally advised that no damages/compensation/interest would be payable even in such an unlikely event.
However, pending the final outcome of the recovery suit filed by the 37 companies and other related matters, TML, as a matter of
prudence, at this point of time, is continuing to classify, as had the erstwhile SCSL, the amounts of the alleged advances as
Amounts Pending Investigation Suspense Account (Net), and the same would be appropriately dealt with/reclassified when the final
outcome becomes clearer.

M&Ms shareholding in TML stands at 26%.
37. Exceptional items (net) of Rs. 317.85 crores (credit) [2013 : Rs. 452.50 crores (credit)], comprise :
Rupees crores
2014
(i) Profit on change in ownership interest in subsidiaries/disposal of subsidiaries (Net)..........
368.18
(ii) Others..............................................................................................................................................
(50.33)
317.85
Figures in brackets signify charge to the Statement of Profit and Loss.
194
2013
453.85
(1.35)
452.50
38. Earnings per Share :

2014
2013
Profit for the year (Rupees crores)....................................................................................................
4,666.93
4,099.20
Profit for the year for diluted earnings per share (Rupees crores)...............................................
4,666.93
4,099.20
Weighted average number of Ordinary (Equity) Shares used in computing basic earnings
per share..............................................................................................................................................
59,03,23,271
58,97,55,261
Effect of potential Ordinary (Equity) Shares on conversion of bonds and employee

stock options........................................................................................................................................
2,51,23,100
2,42,30,839
Weighted average number of Ordinary (Equity) Shares used in computing diluted earnings
per share..............................................................................................................................................
61,54,46,371
61,39,86,100
Basic Earnings per share (Rs.) (Face value of Rs. 5 per share).......................................................
79.06
69.51
Diluted Earnings per share (Rs.)........................................................................................................
75.83
66.76
39. Related Party Disclosures :

(a) Names of related parties where transactions have taken place during the year :
(i) Associates :
Sl. No.
Mahindra Composites Limited (upto 3 October, 2013)
2.
3.
Mahindra & Mahindra Contech Limited
4.
rd
Name of the Company
5.

Mahindra Forgings Limited) (w.e.f. 4th October, 2013)
6.
CIE Automotive, S.A. (w.e.f. 4th October, 2013)
(ii) Joint Ventures :

Sl. No.
Name of the Company
1.
(iii) Joint Ventures of a Subsidiary :

Name of the Company
1.
Mahindra Solar One Private Limited
2.
Mahindra Water Utilities Limited
(iv) Key Management Personnel (KMP) :

1.
Chairman and Managing Director.................................................................................
Mr. Anand Mahindra
2.
Executive Director and Group CFO (upto 13th November, 2013)...............................
Mr. B. N. Doshi
3.
Executive Director and President (Automotive & Farm Equipment Sectors) ..........
(w.e.f. 23rd September, 2013)
Dr. Pawan Goenka
(v) Enterprise over which KMP is able to exercise significant influence :

Sl. No.
1.
Sl. No.
1.
Sl. No.
Name of the Company
Name of the Company

Prudential Management & Services Private Limited
(vi) Welfare Funds :

Sl. No.
Name of the Fund
1.
M&M Benefit Trust
2.
M&M Employees Welfare Fund
3.
M&M Employees Farm Equipment Sector Employees Welfare Fund
4.
Mahindra World School Education Trust
195
(b) The related party transactions are as under : (contd.)

Rupees crores
Sl.
No.
1.
Purchases :
Goods....................................................................................
Fixed Assets..........................................................................
Services.................................................................................
Associate
Companies
Services.................................................................................
819.86
188.31
(177.54)
()
()
2.06
(0.25)
()
()
()
26.15
Redemption/Conversion.....................................................
To Parties..............................................................................
Managerial Remuneration.................................................
Stock Options.......................................................................
(0.10)
(5.56)
()
()
9.19
7.44
(2.96)
(0.15)
()
0.52
(17.13)
( )
()
()
()
()
0.85
(0.97)
()
()
()
4.03
0.09
(3.90)
(0.66)
()
()
14.77
()
()
(7.83)
()
()
()
(#)
()
65.05
(22.50)
Inter Corporate Deposits Refunded by parties................
10.00
(20.00)
Debenture issued by Related parties................................
()
Interest Income....................................................................
196
(0.04)
Finance :
Inter Corporate Deposits given.........................................
()
Deputation of Personnel :
From Parties.........................................................................
7.
()
21.70
(8.00)
6.
()
6.12
(8.00)
5.
5.25
Investments :
Purchases/Subscribed/Conversion......................................
4.
Welfare
Funds
Sales :
Goods....................................................................................
3.
KMP/KMP
Exercising
Significant
Influence
(547.79)
(9.40)
2.
Joint
Ventures/Joint
Ventures of
Subsidiaries **
# Refer Annexure I to the Directors Report.
342.56
(2.90)
446.66
(0.60)
320.17
()
3.01
21.70
(0.84)
(0.69)
()
()
()
()
()
()
0.02
()
()
(b) The related party transactions are as under : (contd.)

Rupees crores
Sl.
No.
Associate
Companies
Joint
Ventures/Joint
Ventures of
Subsidiaries **
KMP/KMP
Exercising
Significant
Influence
Welfare
Funds
0.36
()
()
()
()
Dividend received................................................................
53.32
(5.36)
3.54
(27.81)
()
()
Dividend distributed...........................................................
()
()
93.46
(21.45)
69.92
(67.23)
Interest Expense..................................................................
8.
Other Transactions :
Other Income.......................................................................
0.41
(0.33)
Other Expenses....................................................................
3.54
()
Reimbursements received from parties............................
4.17
(1.20)
Reimbursements made to parties.....................................
1.37
()
9.
Receivable............................................................................
Debenture/Bonds issued by parties..................................
Inter Corporate Deposits Given.........................................
Inter Corporate Deposits Taken.........................................
()
()
()
()
()
()
()
()
32.97
3.41
(36.69)
(3.76)
()
18.39
51.98
1.07
(4.84)
(4.73)
Provision for Doubtful debts/advances............................
Advances Given....................................................................
Advances Refunded.............................................................
()
(17.00)
()
()
10.25
(9.59)
(5.33)
()
()
0.50
()
()
()
11.66
10.00
(11.66)
()
()
(10.00)
0.14
()
Security Deposit received...................................................
320.17
()
17.00
65.78
(0.76)
13.
0.36
33.03
()
12.
(0.13)
67.44
(64.79)
(11.00)
()
11.
()
Outstandings :
Payable.................................................................................
10.
(0.25)
()
()
()
()
()
()
0.01
()
()
()
(0.01)

** Transactions with Joint Ventures/Joint Ventures of Subsidiaries has been reported at full value.
197

Rupees crores
Sl.
No.
1.
Associate Companies
Purchases Goods
Amount
711.61
Joint Ventures/Joint Ventures

of Subsidiaries **
(545.41)
Mahindra CIE Automotive
Limited
2.
Purchases Fixed Assets
Amount
188.31
(177.54)
104.21
()
2.06
()
Mahindra Composites
Limited
3.
4.
Purchases Services
Sales Goods
(0.25)
4.89
Mahindra & Mahindra

Contech Limited
(4.26)
21.24
(*)
5.25
(4.30)
Arabian Dreams Hotel

Apartments
5.98
3.62
(0.10)
Sales Services
9.04
(2.75)
6.
7.
Purchases/Conversion
Investments
Deputation of Personnel from

related parties
(8.00)
()
(5.56)
Mahindra Solar One Private
Limited
5.
18.08
()
Mahindra Homes Private

Limited
2.95

Limited
4.34

Limited
()
(0.14)
(17.13)
Arabian Dreams Hotel

Apartments
0.52

Limited
0.09
()
0.29
Mahindra & Mahindra

Contech Limited
(0.56)
0.56
(0.42)
8.
9.
Deputation of Personnel
to related parties
Inter Corporate Deposits Given

Limited
(3.80)
Mahindra Composites
Limited
198
3.76
59.13
()
(22.50)

Limited
(0.66)
(2.00)

Limited
337.66
()
Mahindra Water Utilities

Limited
(0.90)

Rupees crores
Sl.
No.
10.
11.
12.
Associate Companies
Amount
Inter Corporate Deposits

refunded by parties
Interest Income
Interest Paid
Joint Ventures/Joint Ventures

of Subsidiaries **
Limited
Amount
446.66
()

Limited
2.99
()

Limited
7.64
(0.66)
(0.27)

Limited
13.67
()
Mahindra Composites
Limited
(0.56)
0.31
()
13.
Dividend Received
30.34
()
13.62
(5.36)
CIE Automotive, S.A.
(24.27)
3.54
(3.54)
9.36
()
14.
Other Income
0.16
Mahindra Composites
Limited
(0.33)
0.25
(0.24)
()
15.
Other Expenses
3.54
()
16.
Reimbursement received from

parties

Limited
2.66
()
1.14

Limited
(0.48)
Mahindra Composites
Limited
(0.69)
0.22
()
0.09
(0.08)
0.05

Limited
(0.01)
Mahindra Water Utilities

Limited
(0.03)
Previous years figures are in brackets

** Transactions with Joint Ventures has been reported at full value
The Significant related party transactions with Key Management Personnel are as under :
Sl. No. Nature of Transaction
1.
Managerial Remuneration
Name of KMP
Mr. Anand Mahindra
Dr. Pawan Goenka
Mr. B. N. Doshi
Rupees crores
Amount
5.19
(4.66)
2.36
()
7.22
(3.17)
Previous years figures are in brackets

199
40. Investment in Associates :
Rupees crores
No. of
Equity
shares held
% of
Holding
Cost of
Investments
(Equity
Shares)
Goodwill/
(Capital
Reserve)
Share in
accumulated
Profit/(Loss)/
Reserves
Carrying
Cost
Unquoted :
Mahindra Construction Company Limited...............
9,00,000
37.49%
0.97
(0.97)
Officemartindia.com Limited.....................................
9,00,000
7,49,997
43.83%
50.00%
0.97
0.22
(0.97)
(0.22)
Rathna Bhoomi Enterprises Private Limited.............
7,49,997
500
50.00%
25.53%
0.22
*
(0.22)
*
Kota Farm Services Limited........................................
500
2,73,420
25.53%
45.00%
*
0.27
*
(0.27)
Mriyalguda Farm Solution Limited............................
2,73,420
3,37,500
45.00%
45.00%
0.27
0.34
(0.27)
(0.34)
Mega One Stop Farm Services Limited.....................
3,37,500
3,51,000
45.00%
45.00%
0.34
0.35
0.03
(0.34)
(0.35)
Mahindra & Mahindra Contech Limited...................
3,51,000
70,000
45.00%
46.66%
0.35
0.07
0.03
(0.35)
2.03
2.10
Vayugrid Marketplace Services Private Limited.......
70,000
35.16%
0.07
1.70
1.77
21,21,000
13.73%
1.68
1.68
(1.68)
PSL Media & Communications Limited.....................
39,498
36.12%
0.01
(0.01)
Kismat Developers Private Limited............................
39,498
15
36.12%
42.86%
0.01
*
(0.01)
*
Topical Builders Private Limited.................................
175
50.00%
2.10
Total - Unquoted.........................................................
1.77
Quoted :
Mahindra Composites Limited...................................
Swaraj Engines Limited...............................................
Tech Mahindra Limited...............................................
Mahindra CIE Automotive Limited............................
15,61,203
35.37%
4.00
0.83
2.00
6.00
41,26,417
33.22%
1.63
(10.33)
59.80
61.43
41,26,417
33.22%
1.63
(10.33)
53.48
55.11
6,07,36,978
26.01%
2,326.87
281.40
483.56
2,810.43
6,07,36,978
47.39%
2,326.87
281.40
359.46
2,686.33
296,109
0.32%
5.19
1,60,40,706
13.50%
804.79
339.13
(2.09)
Total - Quoted.............................................................
770.32
3,645.28
Total..............................................................................
2,747.44
3,647.38
CIE Automotive, S.A. (Refer note 3)

(Quoted on a stock exchange outside India)............
(34.47)
3.10
2,749.21
Current Years Figures are in Bold
* denotes amount less than Rs. 50,000
200
2,479.76
1,827.56
2,479.76
1,827.56
2,358.05
2,330.01
2,358.05
2,330.01
695.12
242.58
160.64
160.64
242.58
721.67
753.96
29.07
695.12
724.89
26.55
724.89
141.11
120.56
120.56
141.11
817.14
727.30
51.23
756.48
676.07
60.66
676.07
756.48
Hospitality
(44.42)
97.70
124.55
(26.85)
(44.42)
3,812.24
4,993.62
969.69
2,999.76
4,023.93
812.48
278.61
4,302.54
216.00
3,215.76
Systech
(295.31)
(502.30)
0.54
(502.84)
(295.31)
3,208.21
2,851.31
1,216.34
1,806.90
1,634.97
1,401.31
66.56
1,701.53
106.46
1,913.36
Others
5,795.43
6,301.04
125.09
6,175.95
5,795.43
77,213.97
71,983.06
3,289.57
74,000.93
68,693.49
3,213.04
5,278.39
73,971.88
4,229.70
78,230.63
Total
25.63
(122.51)
(124.55)
2.04
25.63
(3,213.04)
(3,289.57)
(3,289.57)
(3,213.04)
Eliminations
201.63
629.75
311.15
145.98
317.31
452.50
5,819.60
5,580.37
1,793.91
1,754.11
(490.71)
(21.11)
193.02
311.03
209.42
5,867.50
5,611.64
676.36
5,821.06
6,178.53
0.54
6,177.99
5,821.06
74,000.93
68,693.49
74,000.93
68,693.49
5,278.39
73,971.88
4,229.70
78,230.63
Consolidated
Total
Rupees crores
Profit for the year before Minority Interest
5,153.80
4,129.15
483.41
3,645.74
830.42
88.09
95.35
95.35
88.09
1,297.70
1,423.28
756.63
648.77
666.65
648.93
94.41
761.06
86.93
735.70
Steel Infrastructure
Trading and
Processing
Add/(Less) : Share of Profit/(Loss) of Associates for the year
Deferred Tax
1,284.03
1,460.93
1,460.93
1,284.03
5,305.87
4,117.44
25.43
5,276.93
4,092.01
28.94
4,092.01
5,276.93
Financial
Services
4,323.38
MAT Credit Entitlement
221.78
30.35
30.35
221.78
291.72
1,493.78
32.24
258.91
1,461.54
32.81
1,461.54
258.91
IT Services
Balance of Profit for the year before Share of Profit of Associates
Current Tax
(Add)/Less : Income Taxes
Profit before tax
Add/(Less) : Exceptional Items unallocable to segment
Add : Interest Income not allocable to segments
Less : Interest Expense not allocable to segments
Operating Profit
16,884.16
13,824.76
29.59
44,875.26
41,797.62
Unallocable Corporate Expenses (net of Income)
Segment Result after exceptional

items
Add/(Less) : Exceptional Items

allocated to Segments
Segment Result before exceptional

items
RESULT
Total Revenue
Inter Segment Revenue

179.35
142.27
16,860.40
13,795.16
23.76
4,696.54
Less : Excise Duty on Sales
44,697.66
41,618.27
177.60
13,937.43
132.85
46,314.81
3,687.46
Net External Sales
16,993.25
48,385.12
Farm
Equipment
Gross External Revenue
REVENUE
Automotive
41. Segment Information

Segment Report for the year ended 31st March, 2014

Primary Segment Disclosure - Business Segment
201
202
32,388.07
25,872.13
Financial
Services
714.08
663.28
2,901.45
2,508.79
Steel Infrastructure
Trading and
Processing
2,321.25
1,997.66
Hospitality
2,219.08
3,473.79
Systech
2,413.50
1,853.85
Others
75,252.24
65,322.58
Total
Eliminations
75,252.24
65,322.58
Consolidated
Total
Rupees crores
27,793.09
21,817.12
276.92
281.77
483.83
369.51
1,715.15
1,534.87
524.65
1,108.84
635.88
759.76
46,482.54
39,903.09
46,482.54
39,903.09
345.54
446.15
205.46
164.64
2,613.93
1,992.00
1,576.16
1,428.73
Capital Expenditure

Expense
4.50
39.16
4.74
34.05
26.08
23.66
41.16
34.91
15.40
14.91
5.08
18.59
10.13
8.78
28.33
26.92
39.34
27.55
126.99
109.15
186.75
238.84
186.10
311.67
77.02
80.03
267.69
241.38
2,140.84
2,026.30
3,619.56
3,214.82
59,230.30
51,212.12
62.20
54.68
Total Liabilities
3,022.52
2,858.79
12,747.76
11,309.03
11,968.30
11,117.75
Unallocable Corporate Liabilities
Segment Liabilities
88,270.26
76,469.79
307.81
263.80
IT Services
Total Assets
7,508.60
6,227.85
Farm
Equipment
13,018.02
11,147.21
24,478.40
22,461.43
Automotive
Unallocable Corporate Assets
Segment Assets
OTHER INFORMATION
41. Segment Information (contd.) :
Segment Information (contd.) :

Secondary Segment Disclosure - Geographical Segment
Rupees crores
Domestic
Overseas
Total
Revenue From External Customers.....................................................................................
51,191.02
52,437.93
27,039.61
21,533.95
78,230.63
73,971.88
Segment Assets.....................................................................................................................
58,526.71
50,946.69
16,725.53
14,375.89
75,252.24
65,322.58
Capital Expenditure.............................................................................................................
2,264.70
2,279.21
1,354.86
935.61
3,619.56
3,214.82
Notes :
1.
Business Segments :
The Group has considered business segments as the primary segment for disclosure.
The segments have been identified taking into account the organisational structure as well as the differing risks and returns of these
segments.
Automotive Segment comprises of sale of automobiles, spare parts and related services.
Farm Equipment Segment comprises of sale of tractors, spare parts and related services.
IT Services comprises of services rendered for IT and Telecom.
Financial Services comprise of services relating to financing, leasing and hire purchase of automobiles and tractors.
Steel Trading and Processing comprises of trading and processing of steel.
Infrastructure comprise of operating of commercial complexes, project management and development.
Hospitality comprises of sale of Timeshare.
Systech comprises of automotive components and other related products and services.
Others comprise of Logistics, After-market, Two wheelers, Investments etc.
2.

Secondary Segments :
The geographical segments are considered for disclosure as secondary segment.
Domestic Segment includes sale to customers located in India and service income accrued in India.
Overseas Segment includes sale and services rendered to customers located outside India.
Segment Revenue comprises of :
Rupees crores
2014
2013
Sale of Products......................................................................................................................................
69,022.63
64,702.69
Sale of Services.......................................................................................................................................
2,138.03
3,219.24
Income from long term contracts........................................................................................................
555.32
499.74
Lease and rental income.......................................................................................................................
110.34
191.32
Interest income of Financial Enterprises Consolidated......................................................................
5,162.02
4,003.75
Other allocable income *......................................................................................................................
1,242.29
1,355.14
78,230.63
73,971.88
Total..................................
Rupees crores
2014
2013
* Other allocable income includes :

Scrap Sales...............................................................................................................................................
395.88
478.32
Commission.............................................................................................................................................
11.63
10.60
Dividend Income of Investment Enterprises Consolidated................................................................
0.11
0.52
Others......................................................................................................................................................
834.67
865.70
1,242.29
1,355.14
Total..................................
203
204
0.18
Bristlecone (Malaysia) Sdn. Bhd. **
0.14
7.95
Bristlecone International AG <
Bristlecone Limited $
Bristlecone (Singapore) Pte. Limited ++
0.60
Crest Geartech Private Limited
29.48
196.38
Mahindra & Mahindra South Africa (Proprietary) Limited
Mahindra Aerospace Australia Pty. Limited ^
21.00
112.71
Infinity Hospitality Group Company Limited #
Knowledge Township Limited
5.00
27.60
Industrial Township (Maharashtra) Limited
16.49
39.34
4,981.51
(0.44)
(18.08)
(0.14)
(4.76)
(1.06)
0.55
1.00
Heritage Bird (M) Sdn. Bhd. **
Holiday on Hills Resorts Private Limited
44.07
140.58
(0.03)
39.09
Gipp Aero Investments Pty. Limited ^
Gippsaero Pty. Limited ^
13.20
Gables Promoters Private Limited
*
*
GA200 Pty. Limited ^
GA8 Airvan Pty. Limited ^
(3.72)
85.40
0.70
27.64
Divine Heritage Hotels Private Limited
(71.19)
1.77
(0.01)
(0.01)
(19.03)
(7.37)
37.27
7.79
39.13
1.58
8.43
3.65
2.70
(54.31)
(0.02)
(27.10)
0.01
EPC Industrie Limited
85.00
0.01
Cleansolar Renewable Energy Private Limited
Defence Land Systems India Private Limited
0.01
Brightsolar Renewable Energy Private Limited
23.46
0.68
Bristlecone UK Limited
41.14
19.05
Bristlecone Inc. $
0.41
Bristlecone GmbH
19.94
Bell Tower Resorts Private Limited
Bristlecone Consulting Limited @
0.05
19.22
0.01
Capital
(including
Preference Reserves &
Capital)
Surplus
Anthurium Developers Limited
Airvan Flight Services Pty. Limited ^
Aerostaff Australia Pty. Limited ^
2 x 2 Logistics Private Limited
Name of the Subsidiary
42. Details of Subsidiary Companies (Contd.)
327.82
177.57
31,665.72
44.76
37.48
5.19
33.71
9.45
182.51
179.67
24.52
162.61
28.96
61.54
2.64
4.60
0.96
198.40
18.41
94.03
95.55
24.74
7.21
13.33
49.83
2.03
8.36
0.07
Total
Assets
327.82
177.57
31,665.72
44.76
37.48
5.19
33.71
9.45
182.51
179.67
24.52
162.61
28.96
61.54
2.64
4.60
0.96
198.40
18.41
94.03
95.55
24.74
7.21
13.33
49.83
2.03
8.36
0.07
799.74
0.01
0.01
Investments
(excluding
Total investments in
Liabilities
subsidiaries)
5.50
400.28
4,953.00
6.33
5.90
1.64
87.51
0.20
177.35
1.92
20.42
0.07
1.78
1.52
5.47
24.34
139.89
165.53
34.05
5.79
17.65
10.16
9.29
0.36
(0.11)
28.29
1,345.77
(0.01)
(1.69)
(*)
1.21
0.01
(38.56)
0.20
(0.02)
7.71
(1.06)
(9.98)
(0.32)
(0.01)
(0.01)
0.59
0.18
(5.34)
3.47
15.39
5.46
3.26
1.89
4.76
(8.70)
(0.01)
(7.22)
0.01
Profit/
Gross
(Loss)
Turnover before Tax
7.92
458.54
0.02
(0.06)
0.33
5.38
0.09
0.72
0.51
1.25
(0.11)
20.37
887.23
(0.01)
(1.69)
(*)
1.21
(0.01)
(38.56)
0.20
(0.02)
7.71
(1.06)
(9.98)
(0.26)
(0.01)
(0.01)
0.59
0.18
(5.34)
3.14
10.01
5.37
2.54
1.38
3.51
(8.70)
(0.01)
(7.22)
0.01
Profit/
Provision (Loss) after
for Tax
Tax
251.58
Proposed
Dividend
and Tax
thereon
Rupees Crores
Mahindra Holidays and Resorts USA Inc. $
0.01
88.02
0.05
0.70
701.79
(0.01)
17.84
61.25
Mahindra Housing Private Limited
(20.96)
(256.15)
20.30
328.00
Mahindra Heavy Engines Private Limited
2.85
(0.86)
(2.37)
(0.07)
56.05
(47.87)
(104.41)
0.09
38.05
174.27
16.68
(7.29)
448.36
(11.35)
(2.10)
29.09
1.01
26.87
8.61
5.30
(5.60)
(0.73)
(18.06)
7.89
(33.81)
158.27
7.93
189.96
Mahindra Graphic Research Design S.r.l.
0.07
355.14
15.11
Mahindra Gears & Transmissions Private Limited
63.43
Mahindra Gears Cyprus Limited
138.77
11.74
Mahindra Europe S.r.l.
Mahindra First Choice Wheels Limited
28.00
Mahindra First Choice Services Limited
0.65
8.32
Mahindra Engineering Services (Europe) Limited
0.49
44.00
Mahindra Engineering GmbH
0.05
Mahindra Electrical Steel Private Limited

16.30
4.25
Mahindra Emirates Vehicle Armouring FZ-LLC
15.03
2.13
Mahindra Consulting Engineers Limited
Mahindra Defence Naval Systems Private Limited
0.01
Mahindra Business & Consulting Services Private Limited
31.38
0.05
Mahindra Bebanco Developers Limited
Mahindra Conveyor Systems Private Limited
0.01
Mahindra Auto Steel Private Limited
25.49
1.00
Mahindra Automobile Distributor Private Limited
Mahindra Automotive Australia Pty. Limited ^
0.05
106.51
Mahindra Aerostructures Private Limited
Mahindra Asset Management Company Private Limited
185.54
Capital
(including
Capital)
Surplus
0.72
2,611.15
0.05
79.11
238.08
53.80
25.35
238.78
402.16
159.71
39.62
45.40
54.51
92.31
236.20
23.89
0.54
509.90
15.87
8.79
45.27
19.97
77.62
12.80
18.38
121.51
0.13
40.81
49.44
0.05
166.39
345.51
Total
Assets
0.72
2,611.15
0.05
79.11
238.08
53.80
25.35
238.78
402.16
159.71
39.62
45.40
54.51
92.31
236.20
23.89
0.54
509.90
15.87
8.79
45.27
19.97
77.62
12.80
18.38
121.51
0.13
40.81
49.44
0.05
166.39
345.51
12.66
27.81
1.39
5.55
96.67
5.12
3.92
7.53
10.39
1.30
4.37
2.68
Investments
(excluding
Liabilities
subsidiaries)
798.93
1.94
108.14
131.52
52.93
3.10
3.85
158.78
55.67
29.42
63.10
124.94
225.43
28.06
1.46
4.62
35.13
46.94
11.29
71.89
11.58
168.43
52.61
105.63
94.79
1.41
4.64
(0.12)
141.42
(0.01)
2.20
(57.76)
6.12
9.38
(0.22)
(0.22)
9.94
0.43
(42.65)
(7.61)
(1.52)
69.33
3.60
(0.36)
1.45
0.34
(0.69)
3.59
1.22
6.16
0.30
4.38
1.44
(0.73)
(5.21)
20.60
(*)
(17.54)
(1.02)
Profit/
Gross
(Loss)
Turnover before Tax
0.03
46.89
1.38
1.42
10.55
3.82
(*)
(0.60)
26.50
0.83
0.14
0.95
0.25
1.75
0.11
1.57
0.30
7.00
0.05
(0.15)
94.53
(0.01)
0.82
(57.76)
4.70
(1.17)
(0.22)
(0.22)
6.12
0.43
(42.65)
(7.60)
(0.92)
42.83
2.77
(0.36)
1.31
0.34
(0.69)
2.64
0.97
4.41
0.19
2.81
1.14
(0.73)
(5.21)
13.60
(*)
(17.54)
(1.07)
Profit/
for Tax
Tax
41.55
16.73
0.25
26.91
Proposed
Dividend
and Tax
thereon
Rupees Crores
205
206
59.06
3.30
6.01
0.06
Mahindra MiddleEast Electrical Steel Service Centre (FZC)
Mahindra Namaste Private Limited
Mahindra North America Technical Centre, Inc. $
0.17
0.26
Mahindra Racing S.r.l.
Mahindra Residential Developers Limited
(7.11)
0.06
5.00
Mahindra Tractor Assembly Inc. $
Mahindra Telephonics Integrated Systems Limited
0.01
27.03
Mahindra USA Inc. $
32.66
Mahindra United Football Club Private Limited
Mahindra Ugine Steel Company Limited
1,258.73
0.47
Mahindra Telecommunications Investment Private Limited
6.31
Mahindra Technologies Services Inc. $
35.04
0.13
324.99
(1,240.36)
(6.86)
(3.03)
2.72
4.69
71.53
2.89
10.11
16.54
10.00
2.61
246.05
22.96
Mahindra Trucks And Buses Limited
Mahindra Sanyo Special Steel Private Limited
Mahindra Steel Service Centre Limited
65.79
55.73
Mahindra Rural Housing Finance Limited
55.27
32.61
(463.24)
92.68
(0.02)
(0.01)
(0.03)
(185.31)
0.14
(3.02)
30.85
65.33
1,096.46
328.41
(0.07)
(0.67)
Mahindra Reva Electric Vehicles Private Limited
468.25
0.01
Mahindra Punjab Tractors Private Limited
0.05
527.94
40.85
Mahindra Overseas Investment Company (Mauritius) Limited $
0.05
16.60
Mahindra Investments (International) Private Limited
50.43
80.06
1.50
2.60
130.35
2.58
Mahindra Insurance Brokers Limited
Mahindra Integrated Business Solutions Private Limited
(0.12)
(0.06)
0.05
Capital
(including
Capital)
Surplus
18.00
Mahindra Infrastructure Developers Limited
Mahindra Hotels and Residences India Limited
768.43
0.15
467.37
599.26
2.27
11.84
3.23
19.92
188.77
72.42
575.02
48.13
1,377.64
196.41
132.54
157.29
13.49
0.03
1,261.13
13.57
3.34
48.76
372.29
2,171.49
596.28
5.76
79.41
191.80
7.74
145.06
20.36
Total
Assets
768.43
0.15
467.37
599.26
2.27
11.84
3.23
19.92
188.77
72.42
575.02
48.13
1,377.64
196.41
132.54
157.29
13.49
0.03
1,261.13
13.57
3.34
48.76
372.29
2,171.49
596.28
5.76
79.41
191.80
7.74
145.06
20.36
7.00
2.60
0.59
0.18
901.21
0.01
415.99
6.00
1.43
27.00
15.07
Investments
(excluding
Liabilities
subsidiaries)
1,670.50
0.01
805.45
842.14
43.74
0.17
54.94
133.51
148.82
855.05
78.21
212.52
37.14
206.00
155.57
39.42
9.31
2.98
0.23
68.04
1,756.61
421.33
1,244.46
62.59
11.63
111.18
0.17
13.81
0.01
256.03
(459.29)
(6.86)
(3.02)
0.15
4.16
7.18
8.58
(68.34)
5.85
36.80
(80.51)
(114.00)
41.51
0.28
(*)
(0.02)
(93.00)
0.23
(2.95)
4.58
54.34
101.40
92.57
(0.07)
(0.67)
(5.16)
2.21
63.76
(0.25)
(0.01)
Profit/
Gross
(Loss)
Turnover before Tax
(15.18)
67.88
0.03
1.48
1.75
1.75
1.90
9.72
8.70
0.30
0.09
0.03
17.70
23.67
28.20
0.63
21.76
0.01
28.99
0.01
188.15
(459.29)
(6.86)
(3.03)
0.12
2.68
5.43
6.83
(68.34)
3.95
27.08
(80.51)
(114.00)
32.81
(0.02)
(*)
(0.02)
(93.00)
0.14
(2.98)
4.58
36.64
77.73
64.37
(0.07)
(0.67)
(5.16)
1.58
42.00
(0.26)
(0.01)
Profit/
for Tax
Tax
1.06
1.34
7.17
28.67
19.42
0.18
3.02
Proposed
Dividend
and Tax
thereon
Rupees Crores
5.78
0.05
183.92
2.40
3,822.20
(204.33)
21.94
1,001.73
15.09
(30.22)
(0.99)
(0.10)
(0.07)
(6.14)
(0.68)
(76.31)
73.49
(89.83)
0.05
75.52
49.73
11,396.13
45.82
46.06
448.49
0.07
38.15
7.00
882.22
144.89
1,058.77
513.61
664.47
0.04
3,736.24
Total
Assets
0.05
75.52
49.73
11,396.13
45.82
46.06
448.49
0.07
38.15
7.00
882.22
144.89
1,058.77
513.61
664.47
0.04
3,736.24
10.90
29.55
46.80
Investments
(excluding
Liabilities
subsidiaries)
12.96
91.51
20,240.73
32.36
78.02
192.13
0.01
407.05
0.39
734.81
47.87
102.17
6,968.21
(14.02)
3.55
73.62
19.41
0.96
(0.01)
(*)
(6.04)
(0.49)
(75.29)
(0.69)
(21.15)
13.47
37.04
(*)
329.11
Profit/
Gross
(Loss)
Turnover before Tax
1.20
1.59
0.22
(11.27)
4.58
12.59
112.44
(14.02)
2.35
73.62
17.82
0.74
(0.01)
(*)
(6.04)
(0.49)
(64.02)
(0.69)
(21.15)
8.89
24.45
(*)
216.67
Profit/
for Tax
Tax
0.98
8.84
11.70
64.96
Proposed
Dividend
and Tax
thereon
Rupees Crores
43. Previous years figures have been regrouped/restated wherever necessary.


# Converted into Indian Rupees at the exchange rate, 1THB = Rs 1.84 as on 31st March, 2014

$ Converted into Indian Rupees at the exchange rate, 1USD = Rs 60.06 as on 31st March, 2014

Converted into Indian Rupees at the exchange rate, 1AED = Rs 16.30 as on 31st March, 2014

** Converted into Indian Rupees at the exchange rate, 1MYR = Rs 18.32 as on 31st March, 2014

@ Converted into Indian Rupees at the exchange rate, 1CAD = Rs 54.15 as on 31st March, 2014

^ Converted into Indian Rupees at the exchange rate, 1AUD = Rs 55.71 as on 31st March, 2014

Converted into Indian Rupees at the exchange rate, 1GBP = Rs 99.85 as on 31st March, 2014
Converted into Indian Rupees at the exchange rate, 1EUR = Rs 82.59 as on 31st March, 2014

++ Converted into Indian Rupees at the exchange rate, 1SGD = Rs 47.63 as on 31st March, 2014

< Converted into Indian Rupees at the exchange rate, 1CHF = Rs 67.77 as on 31st March, 2014

> Converted into Indian Rupees at the exchange rate, 1CNY = Rs 9.67 as on 31st March, 2014

Converted into Indian Rupees at the exchange rate, 1ZAR = Rs 5.67 as on 31st March, 2014

Converted into Indian Rupees at the exchange rate, 1KRW = Rs 0.056 as on 31st March, 2014

Extracted from the financial statements as provided by management.

Mahindra Trustee Company Private Limited (MTCPL) was incorporated as a subsidiary of Mahindra & Mahindra Financial Services Limited (MMFSL). MMFSL has agreed to subscribe to
49,998 equity shares of Rs. 10/- each of MTCPL, which Investment is yet to be made by MMFSL.
Mahindra Trustee Company Private Limited
Mahindra Electroral Trust Company
Jiangxi Mahindra Yueda Tractor Company Limited >
Swaraj Automotives Limited
29.01
Ssangyong European Parts Center B.V.
Ssangyong Motor (Shanghai) Company Limited >
0.11
0.05
0.07
Nomad TC Pty. Limited ^
Raigad Industrial & Business Park Limited
0.05
165.18
1.84
71.35
MH Boutique Hospitality Limited #
497.04
Mahindra Yueda (Yancheng) Tractor Company Limited >
Mahindra-BT Investment Company (Mauritius) Limited $
88.31
32.44
200.00
85.00
(1.14)
473.46
1.17
962.25
Capital
(including
Capital)
Surplus
Mahindra World City Developers Limited
Mahindra World City (Jaipur) Limited
Mahindra World City (Maharashtra) Limited
Mahindra Vehicle Manufacturers Limited
207
Notes
208
vakils
ATTENDANCE SLIP
Registered Office: Gateway Building, Apollo Bunder, Mumbai 400 001

CIN: L65990MH1945PLC004558
website: www.mahindra.com email: investors@ mahindra.com Tel: +91 22 22021031 Fax: +91 22 22875485
PLEASE COMPLETE THIS ATTENDANCE SLIP AND HAND IT OVER AT THE ENTRANCE OF THE MEETING HALL. Joint Shareholders desiring to attend
the Meeting may obtain additional Attendance Slips on request. Such request should reach the Company or its Registrar & Transfer Agents,
Sharepro Services (India) Pvt. Ltd. at 13AB, Samhita Warehousing Complex, 2nd Floor, Sakinaka Telephone Exchange Lane, Off Andheri Kurla Road,
Sakinaka, Andheri (East), Mumbai 400 072 on or before 25th July, 2014.
I hereby record my presence at the SIXTY-EIGHTH ANNUAL GENERAL MEETING of the Company being held at Birla Matushri Sabhagar, 19,
Sir Vithaldas Thackersey Marg (New Marine Lines), Mumbai 400 020 on 8th August, 2014 at 3.30 pm.
Name(s) of the Shareholder(s)/Proxy (IN BLOCK LETTERS)
Signature(s) of Shareholder(s) or Proxy

Note: You are requested to bring your copy of the Annual Report to the Meeting.
(To be retained throughout the Meeting)
E-VOTING SLIP

CIN: L65990MH1945PLC004558
ELECTRONIC VOTING PARTICULARS

EVEN
(E-Voting Event Number)
USER ID
PASSWORD/PIN
Note: 1. The e-voting period will commence on Saturday, 2nd August, 2014 (09:00 am IST) and will end on Monday,
4th August, 2014 (05:00 pm IST).

2. Please read instructions given overleaf before voting electronically.
Instructions for e-voting :

Members are requested to follow the instructions given below before they cast their vote through e-voting:
1.
New Users
(i) User ID and password/PIN for e-voting is provided in the table overleaf. Please note that the password is
an initial password.
(ii)
(iii) Click on Shareholder Login
(iv) Put user ID and password as initial password/PIN noted in step (i) above. Click Login.
(v) Password change menu appears. Change the password/PIN with new password of your choice with minimum
8 digits/characters or combination thereof. Note the new password. It is strongly recommended not to
share your password with any other person and take utmost care to keep your password confidential.
(vi) Home page of e-voting opens. Click on e-voting: Active Voting Cycles.
(vii) Select EVEN (E-voting Event Number) of Mahindra & Mahindra Limited which is 100433.
(viii) Now you are ready for e-voting as Cast Vote page opens.
(ix) Cast your vote by selecting appropriate option and click on Submit and also Confirm when prompted.
(x)
(xi) Once you have voted on the resolution, you will not be allowed to modify your vote.
(xii) Institutional Members (i.e. other than individuals, HUF, NRI etc.) are required to send scanned copy
(PDF/JPG Format) of the relevant Board Resolution/Authority letter etc. together with attested specimen
signature(s) of the duly authorised signatory(ies) who are authorised to vote, to the Scrutiniser through
e-mail to sbhagwatcs@yahoo.co.in with a copy marked to evoting@nsdl.co.in
2.
Existing Users
Launch internet browser by typing the following URL: https://www.evoting.nsdl.com/
Upon confirmation, the message Vote cast successfully will be displayed.
If you are already registered with NSDL for e-voting then you can use your existing user ID and password/PIN
for casting your vote. Please follow the steps from Sl. No. (vi) to (xii)
General Instructions :
I. In case of any queries, you may refer the Frequently Asked Questions (FAQs) for Shareholders and e-voting user
manual for Shareholder available at the Downloads section of www.evoting.nsdl.com
II.
Once the vote on a resolution is cast by the Member, the Member shall not be allowed to change it subsequently.
III. The voting rights of Members shall be in proportion to their share in the paid up equity share capital of the
Company as on the cut-off date i.e. 27th June, 2014.
IV. Mr. Sachin Bhagwat, Practicing Company Secretary (Membership No. ACS10189) has been appointed as the
Scrutinizer to scrutinize the e-voting process in a fair and transparent manner.
PROXY FORM
[Pursuant to section 105(6) of the

Companies Act, 2013 and rule 19(3)
of the Companies (Management
and Administration) Rules, 2014]

CIN: L65990MH1945PLC004558
Name of the member(s)
Registered address
E-mail Id
Folio No./Client Id
DP ID
I/We, being the member(s) of
shares of the above named company, hereby appoint:
1. Name:
E-mail Id:
Address:

Signature:
2. Name:
, or failing him
E-mail Id:
Address:

Signature:
3. Name:
, or failing him
E-mail Id:
Address:

Signature:
as my/our proxy to attend and vote (on a poll) for me/us and on my/our behalf at the 68th Annual General Meeting of the Company, to be held on
the 8th day of August, 2014 at 3.30 p.m. at Birla Matushri Sabhagar, 19, Sir Vithaldas Thackersey Marg (New Marine Lines), Mumbai - 400 020 and
at any adjournment thereof in respect of such resolutions as are indicated below:
Resolution
No.
Description
1.
To receive, consider and adopt the Audited Financial Statements of the Company for the Financial
Year ended 31st March, 2014 including the Audited Balance Sheet as at 31st March, 2014 and the
Statement of Profit and Loss for the year ended on that date and the Reports of the Board of
Directors and Auditors thereon.
2.
Declaration of Dividend on Ordinary (Equity) Shares.
3.
Approve not to fill the vacancy created on the Board of Directors of the Company in place of
Mr. Narayanan Vaghul, who retires by rotation and does not seek re-appointment.
4.
Approve not to fill the vacancy created on the Board of Directors of the Company in place of
Mr. A. K. Nanda, who retires by rotation and does not seek re-appointment.
For
Against
[P.T.O.]
Resolution
No.
Description
For
5.
Re-appointment of Messrs Deloitte Haskins & Sells, Chartered Accountants, (ICAI Firm Registration
Number 117364W) the retiring Auditors of the Company, as Auditors of the Company from the
conclusion of this Annual General Meeting (AGM) until the conclusion of the third consecutive
AGM of the Company and approve their remuneration.
6.
Appointment of Mr. M. M. Murugappan as an Independent Director for a term of four consecutive

years commencing from 8th August, 2014.
7.
Appointment of Mr. Deepak S. Parekh as an Independent Director for a term of three consecutive
8.
Appointment of Mr. Nadir B. Godrej as an Independent Director for a term of four consecutive years
commencing from 8th August, 2014.
9.
Appointment of Mr. R. K. Kulkarni as an Independent Director for a term of five consecutive years
10.
Appointment of Mr. Anupam Puri as an Independent Director for a term of five consecutive years
11.
Appointment of Dr. Vishakha N. Desai as an Independent Director for a term of five consecutive
12.
Appointment of Mr. Vikram Singh Mehta as an Independent Director for a term of five consecutive
13.
Appointment of Mr. Bharat Doshi as a Director liable to retire by rotation.
14.
Appointment of Mr. S. B. Mainak as a Director liable to retire by rotation.
15.
Appointment of Dr. Pawan Goenka as a Director liable to retire by rotation.
16.
Appointment of Dr. Pawan Goenka as an Executive Director and approval of the remuneration
payable to him.
17.
Approval of the Remuneration payable to Messrs N. I. Mehta & Co., Cost Accountants, the Cost
Auditors of the Company.
18.
Create, offer, issue and allot Ordinary (Equity) shares of Rs. 5 each of the Company to Mahindra &
Mahindra Employees Stock Option Trust.
19.
Invite/accept/renew unsecured/secured Deposits from the public and/or Members of the Company.
20.
Borrow by way of securities including but not limited to secured/unsecured redeemable

Non-Convertible Debentures and/or Commercial Paper to be issued under Private Placement basis.
Signed this
day of
2014.
Affix
Revenue
Stamp

Signature of shareholder
Against
Signature of Proxy holder(s)
Note:
1. This form of proxy in order to be effective should be duly completed and deposited at the Registered Office of the Company, not less than
48 hours before the commencement of the Meeting.
2. A person can act as proxy on behalf of Members not exceeding fifty and holding in the aggregate not more than ten percent of the total share
capital of the Company carrying voting rights. Further, a Member holding more than ten percent, of the total share capital of the Company
carrying voting rights may appoint a single person as proxy and such person shall not act as proxy for any other person or Member.

M&M AGM Notice

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Notice

MAHINDRA & MAHINDRA LIMITED

THE SIXTY-EIGHTH ANNUAL GENERAL MEETING OF MAHINDRA

To declare a dividend on Ordinary (Equity) Shares.

3. To consider and, if thought fit, to pass, with or without

4. To consider and, if thought fit, to pass, with or without

PDF processed with CutePDF evaluation edition www.CutePDF.com

MAHINDRA & MAHINDRA LIMITED

Dr.Vishakha N. Desai (DIN:05292671), Director of the

the provisions of the Companies Act, 1956 and in respect of

Notice 2014 (12pp) 2-7 at8.20 pm.indd 2

MAHINDRA & MAHINDRA LIMITED

2013 and the Rules framed thereunder (including any

deemed to include any duly authorised Committee thereof,

The value of the perquisites would be evaluated as per

2. Contribution to Provident Fund, Superannuation Fund,

3. Encashment of earned leave at the end of the tenure as

Notice 2014 (12pp) 2-7 at8.20 pm.indd 3

MAHINDRA & MAHINDRA LIMITED

of the Company at the 64thAnnual General Meeting of the

FURTHER RESOLVED that for the purpose of giving effect

FURTHER RESOLVED that the total number of Options to be

FURTHER RESOLVED that the new Ordinary (Equity) Shares

RESOLVED that pursuant to the provisions of section 148 of

19. To consider and, if thought fit, to pass, with or without

RESOLVED that in furtherance of and pursuant to the Special

RESOLVED that pursuant to the provisions of sections 73, 76

Notice 2014 (12pp) 2-7 at8.20 pm.indd 4

MAHINDRA & MAHINDRA LIMITED

(India) Private Limited having their Registered Office at

F. The Register of Members and Transfer Books of the Company

FURTHER RESOLVED that for the purpose of giving effect

Due dates of transferring unclaimed and unpaid dividends

Last date for claiming

31st March, 2007

31st March, 2010

26th August, 2017

6th September, 2018

6th September, 2019

11th September, 2020

E. The Companys Registrar and Transfer Agents for its Share

Notice 2014 (12pp) 2-7 at8.20 pm.indd 5

MAHINDRA & MAHINDRA LIMITED

changes, if any, in their registered addresses at an early

I. Members can avail of the facility of nomination in respect

(d) consolidate their holdings into one folio in case they

Name of the Director

None of the Directors of the Company is inter-se related to

K. The Company has extended the facility of electronic credit

In respect of the information to be provided under Clause49

L. Pursuant to sections 101 and 136 of the Companies Act, 2013

II. Members are requested to note that the business may

Notice 2014 (12pp) 2-7 at8.20 pm.indd 6

MAHINDRA & MAHINDRA LIMITED

V. The e-voting period commences on Saturday, 2ndAugust,

VI. The voting rights of Members shall be in proportion to

VIII. The Scrutinizer shall, within a period not exceeding3

IX. The Results shall be declared on or after the AGM of

(iii) Click on Shareholder Login

(iv) Put user ID and password noted in step (i)

(v) Password change menu appears. Change the

(viii) Now you are ready for e-voting as Cast Vote

(ix) Cast your vote by selecting appropriate option

3. To consider and, if thought fit, to pass, with or without

4. To consider and, if thought fit, to pass, with or without

The value of the perquisites would be evaluated as per

2. Contribution to Provident Fund, Superannuation Fund,

3. Encashment of earned leave at the end of the tenure as

FURTHER RESOLVED that for the purpose of giving effect

FURTHER RESOLVED that the total number of Options to be

FURTHER RESOLVED that the new Ordinary (Equity) Shares

RESOLVED that pursuant to the provisions of section 148 of

19. To consider and, if thought fit, to pass, with or without

RESOLVED that in furtherance of and pursuant to the Special

RESOLVED that pursuant to the provisions of sections 73, 76

F. The Register of Members and Transfer Books of the Company

FURTHER RESOLVED that for the purpose of giving effect

Due dates of transferring unclaimed and unpaid dividends

E. The Companys Registrar and Transfer Agents for its Share

I. Members can avail of the facility of nomination in respect

(d) consolidate their holdings into one folio in case they

None of the Directors of the Company is inter-se related to

K. The Company has extended the facility of electronic credit

In respect of the information to be provided under Clause49

L. Pursuant to sections 101 and 136 of the Companies Act, 2013

II. Members are requested to note that the business may

V. The e-voting period commences on Saturday, 2ndAugust,

VI. The voting rights of Members shall be in proportion to

VIII. The Scrutinizer shall, within a period not exceeding3

IX. The Results shall be declared on or after the AGM of

(iv) Put user ID and password noted in step (i)

(v) Password change menu appears. Change the

(viii) Now you are ready for e-voting as Cast Vote

(ix) Cast your vote by selecting appropriate option

(x) Upon confirmation, the message Vote cast

(xi) Once you have voted on the resolution, you

A. In case a Member receives an email from NSDL [for

Dr.Goenka received the Outstanding International Advisor

Dr.Goenka is on the Boards of several Mahindra Group

(ii) Steps taken or proposed to be taken for improvement and

Dr.Goenka is a past President of Society of Automotive

The information and Disclosures of the remuneration package

Dr.Pawan Goenka satisfies all the conditions set out in Part-I

The Members of the Company had at their Meetings held on

he Equity Shares allotted to the Trust as well as the Options

he Members of the Company had at their Meeting held on

s of 31stMarch, 2014, the Trust has granted 2,00,88,466

s of 31stMarch, 2014 the Trust held 2.61 crore shares. As against